Consumers must shop around for insurance, expert says
Taking the time to shop around and compare savings on products such as car insurance is advisable for anyone eager to be frugal in the aftermath of the recession.That is the opinion of Jasmine Birtles...
That is the opinion of Jasmine Birtles, founder of online resource Money Magpie, who has called on Britons to make sure they explore all possibilities on their home insurance and vehicle cover before putting pen to paper on any deal.
Ms Birtles explained that doing so can result in individuals saving significant amounts of money as nothing is priced fairly in the industry, meaning it is up to consumers to find the most attractive deals.
"Insurance companies make huge profits and it's pretty rare for them to bring their prices down considerably," she said.
The specialist went on to note that many firms "bank on" their customers' lack of knowledge when it comes to the renewal of a policy.
A recent study by markettiers4DC found that 65 per cent of people think it's fair for a company to refund some money if policyholders don't claim on their plan.
Meanwhile, home insurance premiums have increased only slightly throughout the duration of the last year, an expert has said.
People with contents and buildings insurance might have expected their charges to go up significantly in recent times as the UK recovers from the worldwide economic slump, but this has not been the case according to Graeme Trudgill, head of corporate affairs at the British Insurance Brokers Association (BIBA).
Mr Trudgill stated that annual insurance fees have actually "hardly moved at all" over the last decade, but the previous 12 months or so have seen them alter slightly more than normal.
"The average premiums for home building and home contents insurance have been pretty stable in such a competitive market," he noted.
This comes after research conducted by Defaqto found that 88 per cent of all home insurance products do not provide cover for items that are kept out in the open, which may concern people who store equipment such as tools outside in the summer months.
Householders across the UK must scrutinise their home insurance policy to make sure their possessions kept outdoors are covered as summer approaches.
That is according to independent financial research firm Defaqto, which noted that now is the time for consumers to read through the finer details of their contents and buildings insurance to make sure goods such as bicycles, barbeques and gardening equipment are covered under the terms of their deal.
A study conducted by the company found that 88 per cent of home insurance packages do provide a safety net for contents kept out in the open, but just 16 per cent do so to a value of £2,500 or more.
Mike Powell, insight analyst for general insurance, commented: "The devil is in the policy detail so it is essential for people to check whether their home contents policy will provide the level of cover they need."
Research published yesterday (April 12th) by the AA showed that average premiums on home and car insurance policies have gone up by 40 per cent in the last year.
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