Consumers ''are failing to switch insurance even as premiums rise''
Published: 15 July 2008
By MoneyhighStreet Staff Leave a Comment
Updated: 30 November -0001
Consumers are accepting higher insurance premiums because they cannot be bothered to look at alternative providers, a new report has warned.
Research from Tescocompare.com found that 64 per cent of Britons did not switch their home insurance when it was last up for renewal, despite the fact that 44 per cent saw their premiums increase.
Of the 2.5 million consumers who saw their home insurance rise by more than the rate of inflation, only 22 per cent even thought about looking for an alternative deal.
Similarly, only a third (32 per cent) of motor insurance customers said they have switched their policy in the last year. Worryingly, seven per cent said they have never changed car insurance provider.
"Many insurers attract new customers through introductory offers and unfortunately this often means that premiums shoot up at the next renewal date," the website''s director of commercial and partnerships, Paul Baxter, explained.
"With the credit crunch in full swing and people tightening their belts, this is an area where savings can easily be made. We encourage everyone to check the competitiveness of their renewal premium before accepting."
Recently, the government and the Association of British Insurers came up with a deal that should ensure the long-term provision of flood cover in the UK.