Confused.com reveals apathy and bullying tactics in Home Insurance market

Publication Date: Thursday, August 19, 2010

43% of the UK believe staying loyal to their home insurance provider will get them a better deal
34% said they felt bullied by their bank or mortgage provider into buying home insurance
One in five can’t be bothered to switch

New research from Confused.com has revealed that home insurance providers are cashing-in on customers’ misplaced loyalty, after it discovered 43% of the UK believe staying loyal to one home insurance provider will get them a better deal. The price comparison site estimates this could collectively be costing home owners over a billion pounds every year.*

Furthermore 34% said they had felt bullied by their bank or mortgage provider into taking home insurance with them and 8% of people 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.

Confused.com also found that 37% of people believed being loyal will increase the chances of a payout on a claim and less that one in three has switched home insurance in the last year. One in five said they just couldn’t be bothered to switch.

Gareth continues: “In terms of claims a person has as much chance of one being paid out if they’ve been with their insurer for 1 year or 10 years. The important thing is to ensure they have home insurance cover, there are no rules in place to say it has to be with the same provider.”

*based on 10% of customers saving £273.84 with Confused.com this year. There are 26 million households in the UK.

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