Insurance renewal day fills most people with dread. You know you need insurance, but the idea of spending hours of your weekend shopping around for another insurance quote isn’t the most ideal scenario.
And it seems a lot of us are sticking to avoid the hassle, and that means we’re losing out. In fact, a recent report by the Citizens Advice Bureau feared that 13 million households could be paying more than they should for home insurance because they failed to shop around. We don’t believe it should be this way, so we’ve done 2 things:
- Created this quick guide to sticking versus switching.
- Made it possible for you to buy Home Insurance in 4 minutes.
STICK, but you probably won’t be rewarded for your loyalty
Unfortunately, when it comes to insurance, being a loyal customer doesn’t mean you will be rewarded with a cheaper renewal price. In fact, this rarely happens; 12.9 million UK households could be paying a loyalty penalty for staying with the same insurer over time (according to The Financial Conduct Authority.)
Haggle on the phone, but who has time for that?
Make sure you have at least two other quotes from insurance providers to use as evidence that their price is too high. It’s worth asking how they can better these offers, either with a further discount or with policy add-ons like free home emergency call outs. If they’re stubborn, make it clear that if they can’t match the offer, you will switch providers. Which? has reported that 77% were offered a better deal or some sort of incentive to stay with their insurer by haggling.
Beware of auto-renewing
Auto-renewing may sound appealing, but many insurers take advantage of this loyalty by increasing their premiums in the second year. Whilst the Financial Conduct Authority made it a legal requirement in April 2017 for insurers to inform the policyholder if their premiums are going up, many consumers aren’t aware that they could get a better price from their insurer for the same cover.
SWITCH, and save money
Whilst normally shopping around can be time-consuming (with Homelyfe it only takes 4 minutes), it’s the best way to dramatically decrease your home insurance premiums. According to Which?, ‘Homeowners could be saving over £80 a year by challenging their existing home insurance provider or shopping around for a better deal elsewhere.”
How to switch
1. Work out what cover you need
Most insurers insist that you work out the rebuild value of your house, and the estimated value of all the contents inside to get the right level of cover and you’ll need to have these answers prepared in advance.
Make a list of what additional cover you want to include in your policy, like accidental damage and cover away from home. This will make it easier to compare like-for-like policies based on what’s important to you.
2. Get quotes
With most insurance providers, you will need to be prepared to answer up to 60 questions before you get a quote. This covers things like what lock is on your front door and what your external walls are made of. Make sure you know any changes that have happened in the last year, including any changed names, occupations, or house amends like a new extension or kitchen.
3. Get savvy
Make sure you read the small print of the policy to find any exclusions or limits to your cover. To save money, look into combining your Buildings and Contents Insurance as often you can get a discounted rate. Finally, if you can, paying annually rather than monthly will save you money as you aren’t paying APR rates on your monthly instalments.
How we’re different
- You can buy Home Insurance (Buildings and Contents) in 4 minutes with our app.
- No unnecessary questions. We use data instead of asking you to answer up to 60 questions.
- When it’s time to renew your policy, we’ll automatically search to see if there’s a better option out there.
- Buy, manage and claim all from the app.
Get a quote for Home Insurance here.