Household insurance prices in Britain might be overlooked for lower rates
UK Homeowners Missing Out on Cheaper Insurance Deals Due to Auto-Renewal
A recent survey has revealed that a significant number of UK homeowners are missing out on cheaper home insurance deals by auto-renewing their policies without shopping around for better quotes [1][3]. According to the survey, approximately one in four UK homeowners (25%) let their home insurance auto-renew without seeking better deals, potentially losing out on savings or better coverage extras.
The survey also found that men are more likely than women to auto-renew without comparison, with 28% of men admitting to this compared to 21% of women [1][3]. Among the age groups, homeowners aged 25-34 have the highest rate of auto-renewal without comparison, with 35% admitting to this practice [1][3]. Homeowners aged 55 and above are the least likely to auto-renew, with only 14% admitting they do not shop around for better deals [1].
The reasons for this trend include convenience and assumptions that policy needs have not changed over the year, despite changes in property value or coverage needs that often occur [1]. Expert advice repeatedly recommends shopping around approximately 15 days before renewal, as this timing can save 10% or more on premiums compared to last-minute quotes [2]. The market competitiveness means not comparing at renewal often leads to paying more than necessary [2][3].
It is essential to remember that the values of properties can change regularly due to external factors such as interest rate cuts and supply and demand issues. When it's time to renew, homeowners should consider any work done to their home, the value of the property, and the level of cover needed for their contents.
Minor repairs such as fixing a leaky tap can also change a home's valuation. Therefore, it is always worth comparing policies to see if a better deal can be found and checking whether one's needs have changed. By shopping around, homeowners can ensure they have the best possible cover at the most affordable price.
References:
[1] Go Compare. (2021). Home Insurance Auto-Renewal Statistics. Retrieved from https://www.gocompare.com/home-insurance/guides/home-insurance-auto-renewal-statistics/
[2] Money Saving Expert. (2021). How to save money on your home insurance. Retrieved from https://www.moneysavingexpert.com/insurance/home-insurance/
[3] Compare the Market. (2021). Home Insurance. Retrieved from https://www.comparethemarket.com/home-insurance/
- The neglect to shop around for alternatives during auto-renewal of home insurance policies by UK homeowners could lead to missed opportunities for cheaper deals or better coverage extras.
- Men in the UK are more likely than women to auto-renew their home insurance policies without comparing prices, as revealed by a recent survey.
- Homeowners aged 25-34 have the highest rate of auto-renewal without comparison, with 35% admitting to this practice, according to the survey.
- By shopping around and comparing policies, homeowners can ensure they have the best possible cover at the most affordable price, even if the value of their property or the level of cover needed for their contents has changed due to external factors such as interest rate cuts and supply and demand issues.
