British policyholders could save nearly £700 per year by comparison shopping.
According to recent research, homeowners insurance in the United Kingdom is costing an average of £125 per year, per household, more than it needs to, simply because people are choosing to stay with their existing provider instead of shopping around.
This is an estimated waste of £687 every year, according to a U.K. comparison site.
The data analysis also determined that 29 percent of all homeowners insurance policyholders in the country simply automatically renew their policies with their insurers without ever performing a comparison shop to see if a better rate is available.
The reasons for failing to look elsewhere for homeowners insurance are varied.
The survey showed that among those who do not receive quotes from other companies before renewal, 7 percent believe that they wouldn’t find a better deal so it would be a waste of their time. Another 13 percent state that they are content with their current insurer and therefore are not motivated to look elsewhere.
Scottish and Welsh homeowners insurance customers are least likely to shop around.
Among these two populations, 33 percent automatically renew their policies with their existing provider. The survey also showed that people in the United Kingdom remain with the same insurer for an average of two and a half years. Forty eight percent of policyholders have remained with the same company for more than two years. Nine percent have stayed with the same company for over a decade, at the risk of missing out on tremendous savings.
According to spokesperson Hannah Mercedes-Skenfield, from MoneySupermarket.com, the organization that conducted the research, “Insurance apathy rules in UK homes. 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?”
Mercedes-Skenfield recommended that homeowners insurance customers take the time to perform a fast and easy quote comparison among other insurers before renewal time every year in order to help to save money on the premiums paid each month. After all, £125 per year can really add up.