Home Insurance Apathy Costs Brits £700 Million a Year

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Jul 16, 2012, 12:31 ET

CHESTER, England, July 16, 2012 /PRNewswire/ --

Brits could save £125* a year each shopping around for home insurance
Welsh and Scots most apathetic about getting a better deal

Brits are wasting £687 million a year, or an average £125 per household, by sticking with their existing home insurance provider, according to MoneySupermarket.com.^[^1]

Research by the UK's number one comparison site found nearly a third of those with home insurance (29 per cent) automatically renew their home insurance with their existing insurer rather than shopping around to find a better deal. Of those loyal customers, seven per cent don't think they can find a better deal, and a further eight per cent are missing out on savings as they can't be bothered to shop around. Another 13 per cent automatically renew with their current insurer because they are happy with them. The Welsh and Scots are the most apathetic; a third (33 per cent) automatically renew with their current provider.

The research also revealed Brits stay with their home insurer for two and a half years on average. Almost half of respondents (48 per cent) have been with the same insurer for over two years, and nine per cent have been with the same insurer - sacrificing potential savings - for a whopping ten years or more.

Hannah Mercedes-Skenfield, insurance spokesperson at MoneySupermarket.com, said: "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? Shopping around for the best deal is quick and easy, but by not doing so, consumers effectively watch their hard earned cash go down the drain; how many of us would really say no to £125?

"While mortgage providers insist homeowners have adequate buildings insurance, it makes financial sense for every household to have combined buildings and contents insurance in place. Combined policies tend to offer the best value as well as providing comprehensive cover for your home and garden against problems such as subsidence, burst pipes, and personal liability, all of which could land you with a bill for thousands of pounds. This is in addition to more common incidents such as burglary, accidental damage or loss of possessions away from the home. Without having cover in place you could end up having to foot a very expensive bill."

Notes to Editors:

^[1] Opinium Research carried out an online poll of 2,298 UK adults from 20^th - 23^rd April 2012. Results have been weighted to nationally representative criteria.

29 per cent of those with contents or buildings insurance surveyed automatically renew their home insurance (128+146+241= 515/1795(responsible) = 29% or 515/2298(total sample) = 22.41%

515/2298 =22.41% (total UK Adult sample) = 22.41% of UK Adult population over 18 = 49,969,000*22.41% = 11,198,449.

UK Households = 24.5 million (ONS) Only one person in household in theory is responsible for home insurance, so 24.5 million * 22.41% = loyal customers homes = 5,490,450 * £125.14 = 687,074,913 or £687 million

     
    Home Insurance - based on independent                       Average Annual
    online research by Consumer Intelligence during                Saving
    1st May - 31st May 2012                                       GBP125.14

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