Research by a leading UK home insurance company shows that homeowners are overpaying Â£1.7 billion every year on their household insurance.
The research by confused.com puts much of the reason for this in the ‘can I be bothered to swap insurers’ camp. This is surprising given the current economic climate and the worries of an ever increasing number of people about their financial position.
Confused.com says that 73% of homeowners asked said they had household insurance but 34% said that they have never changed their insurance company.
70% of those insured have been with the same insurer for over two years. By not switching insurers homeowners are missing out on savings. This equates to an average overspend of Â£95.26p a year per household says confused.com.
The reasons for not swapping were given as follows:
- 32% cannot be bothered.
- 29% say their current deal cannot be beaten.
- 22% thought it was too complicated to swap.
But 66% did say that they would change if they were shown a better deal.
The Head of Home Insurance at confused.com, Gareth Kloet, said “We are a money saving nation, however most of us still aren't making the effort when it comes to getting insurance for our homes. At Confused.com home insurance customers could save money on their insurance premium.
Shopping around can not only ensure the best value for money, but can also prompt homeowners to ensure they have the right level of cover. Levels of cover can vary between providers so check everything you want is covered and then select a policy that meets your needs. It's worth doing this on an annual basis or after a big purchase 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."