6th September 2007

Confused.com Comment on offer to Freeze Home Insurance Premiums | Cheap Car Insurance and Home Insurance from Confused.com

Debra Williams, Managing Director Confused.com, the UK's leading insurance price comparison service comments on HSBC's new five year fixed home insurance offer for existing mortgage customers:

'HSBC has introduced an eye-catching new home insurance offer, tuning into concerns about premium rises following the recent unprecedented floods across England this summer. Offering to fix home insurance at the same rate for five years will be attractive to many HSBC mortgage holders, but we would warn against customers jumping into bed with this deal without first checking the facts.

'HSBC's home insurance product is underwritten by Norwich Union who recently increased premiums by an average 10%. It's likely that HSBC's offer is not as competitive as it first sounds; the home insurance market is currently very competitive, despite general premium rises related to flood payouts.

'In a variable and unpredictable market, a fixed premium policy will undoubtedly be welcomed by customers who prefer long-term financial stability, however if prices drop these same customers could find themselves significantly worse off.'

'We urge HSBC customers to question whether they'd be eligible for a price cut in the event of premium decreases and advise them to shop around in the first instance to ascertain how competitive this offer is.

'Furthermore, we would advise that anyone who takes out this policy shops around on its anniversary to ensure that it remains competitive.'

Debra Williams added: 'Consumer choice is paramount, and while we welcome all new initiatives, our advice remains - always shop around, remain alert to shifts in insurance premiums, look beyond the marketing hype, and weigh up immediate savings with long-term spend.'

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