Although having a ‘don’t care less’ might mean that homeowners have one less concern to worry about when renewing their home and contents insurance policy, this may well leave them with further monetary issues.
In a recent study carried out by Tescocompare it was indicated that just under two-thirds (64 per cent) of Britons reached the decision to opt with their current building and contents insurance provider when they were last required to renew their premium. Such a proportion comes despite almost 44 per cent of People facing an increase in the cost of their property insurance policy. Furthermore, it was indicated around four million of such people have witnessed their premiums go up at a faster rate than that of inflation. Meanwhile, the price comparison website indicated that with the typical insurance policy worth some 283 pounds, had those approaching the renewal of their premium opted to switch for a cheaper policy then they would have collectively saved 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.
Additionally if they are paying out more money than required for a home insurance policy, it could be possible that consumers discover that they are developing difficulties in managing other constraints on their spending. 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 consumers who intend to carry out repairs to their house or make any major household purchases – double glazing, conservatory or a car for example – taking out a cheap loan might be a recommended course of action. The additional financial help that a cheap loan brings could also assist borrowers to take out a comprehensive home insurance policy which is also competitively priced to ensure that such objects are 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.