Financial portal Confused.com has reported that failure by homeowners to switch their insurance providers for a better deal is costing the nation £1.7 billion annually.
On an average, consumers can save £94.63 annually by switching to a lower premium home insurance deal.
Its research found that 70% of homeowners did not change their insurance provider in the last one year and 13% of total owners never switched their home insurance provider at all.
“As a nation we’ve become really good at shopping around annually for motor insurance, but most of us still aren’t making the effort when it comes to insurance for our homes and their contents. The overall price may be lower than for car insurance, but there are still valid savings to be made”, said Mark Gabriel, head of home insurance at Confused.com.
“Hopping around can not only ensure the best value for money deal, but can also prompt householders to ensure they have the right level of cover”, he added.
39% of all policyholders felt they are on a good deal already while 20% did not bother to change. Surprisingly 11% of the policyholders thought switching was too difficult and 4% were unaware that they can change insurance providers.
19% of the policyholders thought the effort required was not worth the savings and another 9% didn’t know how to go about it.
“Levels of cover can vary between providers so check everything you want is covered and then select a policy that meets your needs”, said Mr. Gabriel.
“It’s worth doing this on an annual basis to make sure you’ve got the right cover at the right price. Loyalty doesn’t pay and you may be able to find better cover at a lower price”, he concluded.