Home insurance firms charge you DOUBLE for being loyal
It’s not just the Big Six energy suppliers ripping you off for sticking with them year in, year out. Home insurers are charging loyal customers DOUBLE the going rate – and the answer is simple: Switch!
MPs were told that people who stay with the same insurer even for two years fall in to the same trap as those who stay with their gas and electricity supplier.
But they are treated even worse.
Dermot Nolan – head of the energy regulator Ofgem – told them: "In the home insurance market the penalties for not switching are relatively and significantly more onerous than they would be for energy.
"If you don’t switch your home insurance you will probably pay significantly more – maybe twice as much after two or three years.
"It doesn’t seem terribly fair."
Although Mr Nolan’s Ofgem is responsible for energy suppliers he is also chairman of the UK Regulators Network – a cross-regulator body – so he knows his stuff.
After his warning, Rachel Reeves, chair of the cross-party Business and Energy Select Committee, said she was writing to Business Secretary Greg Clark to demand that the insurance sector "is giving consumers a fair deal."
He’s not the first to point out this cynical ploy.
In December Which? said customers can save up to £50 on home insurance and £110 on car cover by by "haggling" with their provider when it’s time to renew.
Here’s where to try it.
How to save money
- If you can pay in full then do – instalments are handy for some but are more costly.
- NEVER auto-renew.
- Shop around. Get quotes online and if there’s a better one ask your insurer to match it. If not then move on. And remember to do it next year too.
- Improve security. Adding a burglar alarm will help you cut premiums long term.
When did you last switch your home insurance provider?
We compare prices from the big brands, so you save money