Auto renewing home insurance costing Brits GBP667m a year

Fri, 04 Nov 2011
 
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Homeowners in the UK are missing out on the chance to save money by failing to shop around for cheaper home insurance deals .

A new study by price comparison site Moneysupermarket.com shows that Britons are overspending on home cover to the tune of £667 million per year, or £125 per household, by sticking with their existing home insurance provider.

It found that just under a third of homeowners (31 per cent) automatically renew their home insurance policy with their existing provider. Of those loyal customers, 20 per cent don't think they can find a better deal, while 11 per cent simply can't be bothered to shop around.

On average, Brits stay with the same insurer for three years, with those aged over 55 the most loyal - sticking with their existing provider for an average of four years on average.

Nearly half of UK homeowners (44 per cent) have been with the same insurer for over two years, and seven per cent have remained loyal for ten years or more, according to the research.

Peter Harrison, insurance spokesperson at MoneySupermarket, said: "Having the choice to automatically renew your home insurance is an appealing option for time-poor homeowners - but ask yourself, is it worth paying such a hefty price for the convenience?"

"Shopping around for the best deal is quick and easy, but by not doing so, consumers are effectively watching their hard earned cash go down the drain."

He also urged homeowners to ensure they have combined buildings and contents insurance in place as combined policies "tend to offer the best value as well as providing comprehensive cover for your home and garden".