11 May 2007

Launch of New Beat and Freeze Offer | Cheap Car Insurance and Home Insurance from Confused.com

Debra Williams, Managing Director of leading home insurance search engine www.cCnfused.com comments on the launch of the new Halifax 'beat and freeze' home insurance offer:

'Halifax has developed a great new home insurance initiative with the launch of its 'inflation-beating' home and contents offer, providing an additional level of choice to the consumer. Fixing premiums at the same rate through to 2010 is appealing, as is its cast iron promise to beat any competitor's renewal rate, however this deal won't be suitable for everyone and we urge customers to look beyond the marketing hype before leaping into bed with Halifax.

'While the promise to beat renewal prices is tempting, unless you've shopped around and discovered that you are already with the cheapest provider, this offer means very little; Halifax does not promise to beat the cheapest market price, only that provided by your existing insurer. Consumers therefore need to carefully consider their individual needs and how their circumstances may change over a longer period before locking themselves into a fixed plan.

'In a variable and unpredictable market, a fixed premium may offer cost-savings if home insurance prices rise, however if they drop, you could find yourself significantly worse off. Couple that with any early termination penalties, and this product starts to look uncompetitive.

Debra Williams added: 'Consumer choice is paramount, and while we welcome all new initiatives to the market, our advice remains the same - shop around, look beyond the marketing hype, and weigh up immediate savings with potential future savings. Our figures show that customers save an average £120 every year by switching at renewal time.'

Editor's notes

• Confused.com searches over 70% of the online home insurance market
• Confused.com provides a real-time service for home insurance, bringing back results in less than two minutes.

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