Loyal Customers Pay More For Home Insurance

LOYAL customers could be paying up to £132 more for their home insurance than if they took out a new policy with their provider.
 
An investigation by Which? found that customers who’d been with their insurer for over a year actually pay 32 per cent more than new policy holders.
 
Loyal home insurance owners, those with their provider for over a year, will end up paying over a third more for their coverage.
 
According to research from Which?, renewing your policy with your insurer ends up being costly. On average, home insurance customers that had been with their insurer for over a year paid £75 more than new customers.
 
Of the nearly 6,000 customers surveyed, new customers were charged a median premium of £195.
 
Despite the rise in price, many do not switch. 69% of survey respondents had been with their insurer for over a year.
 
The consumer group surveyed nearly 8,000 people and found that policy holders who’d been with the same insurer for over 20 years paid the most – around double the amount of what new customers paid.
 
This is because insurers tend to drop prices for introductory rates to entice new customers.

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