Home insurance: Premium price battle - myfinances.co.uk

Home insurance: Premium price battle - myfinances.co.uk: "Home insurance battle forecast

Home insurance battle forecast

Monday, 14 Jan 2008 16:57

Home insurance customers are set to head online to compare insurance quotes in larger numbers, according to new research.

Currently 69 per cent of motor insurance customers use price comparison websites to get quotes for cover, but only 43 per cent of home insurance customers do so.

However, with rising mortgage repayments and household bills, a study from industry research firm Consumer Intelligence (CI) reveals an increase in price sensitivity of ten per cent among home insurance customers.

"Consumers long ago woke up to the fact they can save serious money on their motor insurance by switching providers. It was only a matter of time before they applied the same principle to home insurance," said Ian Hughes, managing director of CI.

"Recent mortgage and energy cost increases have seen home owners looking to offset these rises. Reducing home insurance premiums is a quick and easy way of saving money."

He went on to explain the slow uptake in switching home insurance providers was due to mortgage lenders often being a homeowner's insurer.

However, the current situation of leading insurers cutting up to 50 per cent off premiums is described as "a golden opportunity".

"Obviously we recommend consumers take advantage of the situation. Get out there and sniff out the best deals… you could save yourself a great deal of money!" Mr Hughes said.

"We’d also advise people to widen their search, bearing in mind that some of the biggest names in home insurance offer their best deals direct."

This week Churchill has launched a price promise to beat home insurance renewals by £30.