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Buying separate insurance may be cheaper

Buying separate insurance may be cheaper

Category: Home insurance

Updated: 27/11/2012
First Published: 07/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Buying separate polices for home and building insurance could be cheaper than a combined package for more than two fifths of households, according to new figures.

Some 41 per cent of consumers would save money by purchasing separate polices for their buildings and contents cover from different insurers, a study by AA Insurance has found.

In fact, almost six in ten (59 per cent) of households would benefit from separate discounts if promotional discounts disappeared.

Simon Douglas, director, said: "Many insurers offer special discounts for buying a combined home and contents policy. But even when taking that into account, a surprising number of customers would be better off buying policies from different insurers."

Figures also show that Britons are shopping around to find a competitive deal on their cover. A third of homeowners arrange their home insurance policies with the bank or building society where they arrange their mortgage.

Many have renewed their cover for years on end without researching other options, despite the possibility of making significant savings.

Concerningly, around 20 per cent of homeowners have cancelled their home cover or not taken up the option to renew since the beginning of the recession.

Mr Douglas said the trend was worrying, especially as claims for burglary and weather damage are increasing.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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