New Which? research reveals people could be saving on their home insurance premiums by haggling or switching to a new provider.
Of the 2,010 members of the public surveyed, half (48%) didn’t haggle on their existing deal and only around a third (36%) changed their home insurer in the last 12 months.
Those that did haggle, six in ten (59%) saved money on their premium with an average saving of £82. Policyholders that switched cut their premiums by an average of £72.
Of the brands surveyed, home insurance customers had the most success with LV, where seven in ten (70%) policyholders who tried haggling bartered their way to a better deal. Two thirds (68%) of Saga customers and 66% of Direct Line and Aviva policyholders who haggled also negotiated lower premiums.
Which? Money editor Harry Rose said:
“Homeowners could be saving over £80 a year by challenging their existing home insurance provider or shopping around for a better deal elsewhere. The recent announcement that insurers must show last year’s premium on renewal letters should also serve as a useful prompt to people that they could be saving money.”
Which? top tips on how to cut the cost of home insurance
1. Increase home security – adding a burglar alarm or a five-lever mortice deadlock to your main doors will make you a more attractive proposition and cheaper to cover.
2. Quick comparison site quotes – check online for quotes to use in your negotiations.
3. Only get the cover you require – everyone should consider contents insurance, buildings cover is only for freeholders.
4. Do your valuations sums – many people miscalculate the cost of their buildings and contents. For buildings, provide the rebuilt value and not market value. However, be careful not to under-insure your contents and the cost of replacing them.
5. Pay annually – instalments can be more expensive with APR rates as high as 40% so, if possible, pay an annual fee.
Notes to Editors
1. Which? surveyed 2,010 members of the public about haggling and switching on their home insurance in December 2015
2. For information on Home Insurance, the basics, visit: http://bit.ly/1mrTeC9
3. For best and worst Home Insurers, visit: http://bit.ly/1KbnWLn
4. For more information on our victorious We Don’t Want To Pay A Premium campaign visit: [http://bit.ly/1o5Wrs6]