Wednesday 31 July 2019

Stay or switch? Why shopping around means cheaper home insurance

Author: Cambridge Web Marketing

Home and contents insurance protects your most valuable possessions but with loyalty no longer rewarding the customer, shopping around for the best deal on home insurance is simply essential. Here’s why.

1. Get the best premium price

According to one insurance comparison site, 1 in 5 homes in the UK are uninsured. When surveyed, nearly 50% said it was because they found home insurance premiums too high.

@InsuranceDotCom found that a third of customers never or rarely shop around for better home insurance rates. Shopping around before your home insurance policy is due for renewal means you could save money and still have a great insurance product that protects your home.

2. Loyalty doesn’t always pay

At one time, the longer a customer remained with an insurance company or provider, the better deal they got. Today, this is rarely the case.

When your current home insurance provider gives you a renewal quote, it may only be a few pounds extra, but there is usually an increase to cover the increase in insurance rates, business costs and so on.

Over time, these ‘small’ increases add up. And so even though you have been a ‘loyal’ customer for years, they are counting on the fact you can’t or won’t be bothered to shop around.

If you like your current insurance provider, you could always go to them with a like-for-like quote and ask them to match it.

3. Your property has changed

The other thing that many customers don’t realise is that changes to your property will also affect your home insurance. Renovating or extending your property, for example, will impact on the premium price. Shopping around means you get a much better deal to cover your home and the changes you have made.

4. You change the level of insurance

The likelihood of you needing the same level of cover year after year is also unlikely. For example, you may decide to increase your home insurance cover because you have invested in an expensive piece of equipment such as a laptop. Keeping the same insurance policy year after year could mean a shortfall in your cover, something you will only discover when you come to make a claim.

5. Vary the excess on the home insurance policy

The excess is the amount of money you will need to pay in the event of a claim. In theory, the higher the excess you choose (that is, the more you are willing to pay), the lower the home insurance premiums. You may decide to change the level of excess, reducing it, for example, and that means a change in the premiums you pay.

Shopping for a better home insurance deal

There are other reasons why shopping around for a better home insurance deal makes sense. But you still need to be sure that you have the right product at the right price. Our insurance team have their finger on the pulse of the home insurance market. Get in touch to tap into their expert knowledge.

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Written by: Cambridge Web Marketing