Insurance Customers 'Sleepwalk to Higher Premiums'

Many consumers are losing out by neglecting to switch to cheaper home insurance, Tesco has claimed.

According to the firm, 64 per cent of Britons stay with their existing provider when the time comes to renew their premium. This customer loyalty comes despite the fact that 44 per cent see price increases with the renewal, and that a total of four million customers saw above-inflation price rises.

Tesco also said that an excess of around £26 million a year is being paid by home insurance customers neglecting to make the switch. The average renewal premium was also found to be £283.

A customer poll conducted by the firm showed that, of those who saw an above-inflation increase and stuck with their provider, only 22 per cent had even considered a move elsewhere.

Paul Baxter said: "The message behind this research is clear: many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged. Regardless of how loyal you are to your current home and contents insurer, you should shop around at each renewal to make sure you get the cheapest and most appropriate insurance for you."

Tesco's research also found that just 48 per cent of people who stayed put with their old home insurance firm were told by the company of their premiums increase, giving them enough time to make the switch.
 

Compare home insurance via money.co.uk