Tescocompare Reveals Apathy Of Home Insurance Customers
Although having a sense of apathy may mean that homeowners have one less concern to think about when renewing their insurance policy, doing so could leave them under more monetary pressures.
In research carried out by Tescocompare it was revealed that just under two-thirds (64 per cent) of Britons made the decision to opt with their existing home and contents cover supplier when they were last required to renew their premium. Such a proportion comes despite almost 44 per cent of Britons facing an increase in the cost of their home insurance policy. Furthermore, it was indicated around four million of such consumers have seen their premiums rise at a faster rate than that of inflation. Meanwhile, the price comparison website pointed out that with the typical insurance policy worth some 283 pounds, had those approaching the renewal of their premium opted to switch for a more competitively-priced plan then they would have saved a total of some 26 million pounds.
The Tescocompare study also indicated that only just over a fifth (22 per cent) of people surveyed who were facing a price increase above the rate of inflation thought about switching supplier. Out of such consumers, just eight per cent found that they could not get the same level of cover at a cheaper price.
Following on from paying out higher amounts of money than is necessary for a home insurance policy, it could be possible that consumers find that they are developing difficulties in managing other constraints on their spending. Such areas could well include credit and store cards, loans, mortgage repayments and household bills.
In addition, it may be possible that a significant number of consumers are willing to place themselves under further financial pressures. Of those who opted to stay with their provider, 48 per cent feel that they were given a long enough amount of time to change supplier ahead of being hit with a price increase although they eventually ended up staying put.
Paul Baxter, spokesperson for Tescocompare, 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.”
For those consumers looking to carry out repairs to their property or purchase major household items – refrigerators, sofas and ovens for example – taking out a loan might be recommended. The additional financial assistance that a low-rate loan brings could also help borrowers to take out a comprehensive home insurance policy which is also competitively priced to make sure that such items are covered.
A loan could also be of assistance for consumers wishing to insure their pets. In a recent piece of research Sainsbury’s Finance revealed that 11 million Britons do not have cover for their cat or dog, with around 4.6 million of such people believing such a premium is unimportant. However, should people not have insurance for their animal they may have to dip into their pockets should their four-legged friend fall ill, with the typical bill for vet treatment revealed to cost about 300 pounds.
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