Paying price for failing to shop around

A QUARTER of people are paying up to three times as much for their home insurance as they need to because they are failing to shop around for the best deal.
By The Newsroom
Published 11th Jun 2011, 07:00 BST

Around 23 per cent admit they simply renew their policy with their existing provider each year, 24 per cent of whom say they are too busy to look for a better deal, according to RAC Home Insurance.

But the group estimates that people who automatically renew their policies each year could be paying up to 224 per cent more for their cover than if they had switched to the most competitive provider.

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The average person has been with their current home insurer for just over four years, with only 16 per cent having had the same provider for less than a year.

But despite failing to switch their cover to a new insurer, 71 per cent of people said they did not think their loyalty was being rewarded.

Mark Godfrey, head of RAC Insurance, said: “Home insurance policies can vary a great deal, so it is essential people compare them not only on price but also on the level of cover they provide.

“Shopping around doesn’t have to be time-consuming and by taking advantage of panels such as ours, that do the work for you, there are significant savings to be made.”