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£1.5 billion lost as insurance hikes are accepted

£1.5 billion lost as insurance hikes are accepted

Category: Insurance

Updated: 28/11/2017
First Published: 21/12/2010

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 It is now over 6 months old so the content may be out of date.

Britons are letting £1.5 million slip through their fingers every year because of their refusal to drive a hard bargain over insurance premiums.

Car and home insurance customers are willing to swallow over £1.5 billion a year in premium increases before they shop around to find a better deal, according to Virgin Money.

Despite consumers consistently being advised to shop around for a better deal than they already have, the average insurance customer will accept an 8.13% across the board rise in their annual motor, home contents and buildings premium before they decide to switch to a more competitive deal.

Figures also show that a massive 45% of insurance customers never look elsewhere for a new deal.

By comparison, of the 55% that do consider shopping around for a new insurance deal to be important, the average person spends almost five and a half hours doing so.

The average motor insurance rise a customer will accept is 7.4%, while it would take a 8.6% hike in contents insurance and a 8.4% increase in buildings cover to prompt a policy holder to take their business elsewhere.

With the average comprehensive car insurance costing close to £800, if all of the UK car policyholders that shop around moved from their current policy before that 7.4% trigger, over £1.4 billion a year could be saved on car insurance renewals alone.

With home contents insurance costing an average of £73 and buildings insurance costing around £133, triggers of over 8% on home contents and buildings insurance could potentially lead to savings of over £103 million each year.

Your first step to renegotiating a better insurance deal – and saving yourself some cash in the process – should be to get a quote from one of Moneyfacts.co.uk's partners.

With Moneyfacts.co.uk you can compare insurance quotes for car, home, travel and life insurance from our panel of major insurance companies and get advice on health and income protection insurance.

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 Any products featured may be withdrawn by their provider or changed at any time.