Potential Savings On Home Insurance Ignored
Whilst having a 'don't care less' may mean that homeowners have one thing less to think about when renewing their insurance policy, being that way could leave them with even more financial concerns.
In research carried out by Tescocompare it was revealed that just less than two-thirds (sixty four per cent) of Britons reached the decision to stay with their current building and contents insurance provider when they last had to renew their premium. Such a high number comes despite almost 44 per cent of Consumers facing an increase in the cost of their home insurance policy. On top of that, it was shown around four million of such consumers have witnessed their premiums increase at a faster rate than that of inflation. However, the price comparison website indicated that with the average home insurance policy costing 283 pounds, had those approaching the renewal of their premium decided to switch for a cheaper policy then they would have collectively saved some 26 million pounds.
The study by Tescocompare also indicated that only a little more than a fifth (22 per cent) of people interviewed who were facing a price hike above the rate of inflation considered switching supplier. Out of these people, only eight per cent found that they were unable to get get the same level of cover for less money.
On top of paying out higher amounts of cash than is necessary for a home insurance policy, it could be possible that consumers find that they are developing difficulties in managing additional constraints on their expenditure. Such areas may well include credit and store cards, loans, mortgage repayments and household bills.
Additionally, it is quite probable that a large number of consumers are willing to place themselves under further financial pressures. Of those who opted to stay with their provider, 48 per cent feel that they had enough time to change supplier well in advance of of being hit with a price increase although they eventually ended up staying put.
Paul Baxter, spokesman for Tescocompare, remarked "The message behind this research is clear - many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged. Regardless of how loyal you are to your current home and contents insurer - you should shop around at each renewal to make sure you get the cheapest and most appropriate insurance for you."
For those people seeking to carry out repairs to their property or purchase major household items - refrigerators, sofas and ovens for example - taking out a cheap loan might be recommended. The additional financial help that a cheap loan brings could also help borrowers to take out a comprehensive home insurance policy which is additionally competitively priced to ensure that such things are adequately covered.
A loan could also be of help for consumers requiring to insure their pets. In a new study carried out Sainsbury's Finance indicated that 11 million Consumers do not have cover for their cat or dog, with around 4.6 million of such consumers believing such a premium is unimportant. Meanwhile, should people not have insurance for their animal they may have to dip into their pockets should their four-legged friend fall ill, with the typical bill for vet treatment indicated to cost about 300 pounds.
Mark Dawson writes for the Loan Arrangers. Where visitors can compare loans online, and apply for the best loans rate available to them. To read more articles from Mark go to http://news.loan-arrangers.co.uk
Published June 10th, 2008
