Although having a ‘can’t be bothered’ might mean that homeowners have one less issue to think about when it comes to renewing their insurance policy, doing so could leave them under more financial pressures.
In research undertaken by Tescocompare it was revealed that just less than two-thirds (64 per cent) of Britons reached the decision to stay put with their existing building and contents insurance supplier when they last had to renew their premium. Such a proportion comes despite almost 44 per cent of Britons facing a rise in the cost of their house insurance policy. Furthermore, it was shown around four million of such consumers have seen their premiums rise at a greater rate than that of inflation. However, the price comparison website announced that with the average insurance policy worth some 283 pounds, had those nearing the renewal of their premium decided to switch for a cheaper policy then they would have saved a total of some 26 million pounds.
The Tescocompare study also remarked that only a little more than a fifth (22 per cent) of people questioned who were facing a rise in their insurance premium above the rate of inflation considered switching supplier. Out of such consumers, only eight per cent found that they could not get the same level of cover at a lower price.
Following on from paying out more money than required for a home insurance policy, it may well be that people discover that they are developing difficulties in managing other constraints on their expenditure. Such areas may well include credit and store cards, loans, mortgage repayments and household bills.
In addition, it is quite possible that a large quantity of people are willing to place themselves under additional financial pressures. Of those that decided to remain with their provider, 48 per cent feel that they had plenty of time to find an alternative supplier ahead of being hit with a price add extra to although they finally ended up staying with the same provider.
Paul Baxter, spokesperson for Tescocompare, said “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 consumers looking to carry out repairs to their house or buy major domestic items – fridges, settees and ovens for example – taking out a cheap loan might be a recommended course of action. The additional financial assistance that a cheap loan brings could also help borrowers to take out a comprehensive home insurance policy which is also competitively priced to ensure that such things are covered.
A loan may also be of help for people wishing to insure their pets. In a new piece of research 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 not important. Meantime, should people not have insurance for their animal they may have to dig into their savings should their four-legged friend fall ill, with the average bill for vet treatment shown to cost about 300 pounds.
Mark Dawson writes for Loan-Arrangers .co.uk where visitors can compare loans online. Then apply for the best UK loans and poor credit loans available.
- Mark Dawson