Jenny Ross, Which? Money Editor, said:
“Our research shows longstanding home insurance customers continue to be hit with punitive price hikes, paying up to 75% more than new customers. Over 65s are more likely to renew their policy with their current provider, putting them more at risk of paying this loyalty penalty.
“As the regulator considers how to tackle the loyalty penalty, there are tricks customers can use to reduce their bill. Haggle with your provider at renewal to negotiate a better deal (or go elsewhere) – and don’t pay monthly if you can afford to pay the annual premium upfront, as most insurers will charge you interest.”