Insurance comparison website, Confused.com have found that 43% of the UK believe staying loyal to their home insurance provider will get them a better deal. However this thinking is likely to be costly to consumers, with consumers misplaced loyalty estimated by Confused.com to be costing home owners over a billion pounds every year.
Even if the £1 billion is an overestimate, the survey also found that 34% said they had felt bullied by their bank or mortgage provider into taking home insurance with them and 8% of those asked said they didn’t know they could switch.
Gareth Kloet, head of home insurance at Confused.com, said: “It is startling that so many people have felt forced into taking home insurance with their mortgage provider or banks; customers are being duped into uncompetitive deals.”
“And it seems the fear and misunderstanding doesn’t end after they’ve bought the policy, with many believing they need to remain with their home insurance provider to get the best deals. It’s paramount that customers understand loyalty does not pay. Home insurance isn’t the same as having a Tesco Club Card; a customer won’t get points or prizes for remaining loyal. In fact, they’re likely to pay more.”