If you don’t renew, you could face a huge premium increase
If you choose not to switch your home insurance policy when it is due for renewal, you could potentially face a huge spike in the cost of your policy. When you come to renew, you don’t expect it to increase by 84%, which is what happened to Michael Smith from Chelmsford. He had been with Insure4retirement for several years, making a single claim for some lost spectacles, and his premium had dramatically increased from £395.28 to £726.60 in the last 12 months, an increase of £331.32.
Mr Smith said: “I received my quote from Insure4retirement and was stunned by the increase. I couldn’t understand why it was so much after just 12 months. I remembered that I took out travel insurance with PayingTooMuch.com and thought it best to call their home insurance team and find out how much they could help me save. I am delighted that I did. After speaking to Steve, I found that my quote would be £345.28 which included accidental damage to buildings. So not only was it cheaper than I was already paying, it was £381.32 cheaper than my renewal price with Insure4retirement!.”
Steve Rayner, insurance expert at PayingTooMuch.com said: “Typically, by renewing with the same insurer, year after year, you are missing an ideal opportunity to save money on your home insurance. So, when your home insurance renewal letter drops through the letterbox, don’t accept the premium offered without checking elsewhere.”
What’s behind the increased costs of home insurance?
A substantial proportion of the increase is primarily down to the government raising insurance premium tax from 10% to 12% in June 2017. This added an average of £15 to the cost of combined buildings and contents cover. Additionally, the cost of insurance fraud added an additional £50 to every premium as insurance providers spend at least £200 million every year identifying fraud which cost the insurance industry £1.3 billion in 2016.
PayingTooMuch.com offers policies from all the major insurers including Ageas, Allianz, AXA and Zurich. It only takes 10 minutes to complete a quote based on your personal circumstances, either online or over the telephone. Contact us when your home insurance is due for renewal and see how much you can save.
PayingTooMuch £345.28
Insure4retirement (renewal) £726.60
