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.