UK HOUSEHOLDS OVERPAY £1.7BN PA ON HOME INSURANCE
(26 July 2006)

New figures released today by Barclays Insurance show that British homeowners are overpaying on their home insurance by an average of £1.7 billion a year. This equates to a whopping £112.95 per household, made worse by the fact that most people won’t think about switching until the end of their current policy.

Premiums on household insurance can vary immensely, ranging from £195.73 to as much as £308.68. And while the switching mania has captured many Brits when it comes to energy providers and credit cards, 85% of consumers don’t even switch their home insurance at the annual renewal date.

Average household insurance premiums
Most competitive premium May 2006 = £195.73
Most expensive premium May 2006 = £308.68
Amount of money people can save by shopping around = £112.95
Saving per month = £9.41

Source: Consumer Intelligence May 2006

Every month that customers stay on an uncompetitive insurance policy could cost them an average of £9.41, which quickly adds up to a considerable amount of money. Sticking with a more expensive provider for just six months for instance adds up to £56.46 in overpayments, clearly highlighting that the sooner customers switch to a better deal, the more money they can save.

Mark Till, Marketing Director, Barclays Insurance, comments: “It is amazing to see that people are unaware how easily they can switch their home insurance to a better deal. And more importantly that it is not just an option when it is time for their annual renewal quote. We actively encourage people to shop around to find the best deal to ensure they get the best value home insurance.

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