Many customers are sticking with their current providers when renewing, Tesco has found.
The majority of Britons might be paying over the odds by not switching their home insurance provider when they renew their premiums, new research suggests.
Tesco said today that 64 percent of home insurance customers stayed with their previous provider at their last renewal date, a trend which was marked despite 44 per cent of people experiencing an increase in the amount they paid for the cover. This total includes the 2.5 million customers who saw an above-inflation rise in costs - of whom just 22 per cent switched to a different insurer.
Paul Baxter at Tesco explained: "Many insurers attract new customers through introductory offers and unfortunately this often means that premiums shoot up at the next renewal date. Our research clearly shows that the majority of people don't switch their home insurance provider at renewal, which means people do end up paying higher premiums than necessary."
He added: "With the credit crunch in full swing and people tightening their belts, this is an area where savings can easily be made. We encourage everyone to check the competitiveness of their renewal premium before accepting it."
Tesco also released figures for car insurance switching, which found that 32 percent switched when they renewed their cover. The firm also found that 36 percent have stayed with their current provider for more than three years, and that a hard core of seven per cent have "never" switched their car insurer.
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