Research from Tescocompare.com has revealed that rising home and car insurance premiums and inertia to switch will lock the majority of Brits into higher premiums.
The research shows that 64% of Britons didn’t switch their home insurance at the last renewal date, despite over two in five seeing an increase in their premium. About 2.5 million Brits even saw an increase in their home insurance premiums above inflation.
Despite these worrying figures, only just over one in five of those that saw a price hike above inflation, have contemplated moving their policy to a different provider.
Tescocompare.com’s research shows that Britain’s motorists don’t fare any better – with only a third of the nation’s car owners stating that they have switched their car insurance provider in the last 12 months.
More worryingly, 36% even say they have stayed with their current provider for three years or longer, while 7% of these claim they have never changed their car insurance provider.
Paul Baxter, director of commercial and partnerships at Tescocompare.com, said: 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.