How loyalty to your home insurer can cost you £200: Householders who stay loyal are worse off, survey finds
- Loyal UK home insurance customers are being penalised by firms, survey finds
- Which? found customers were paying 38 per cent, more than a new customers
- Plans are being drawn up to end disparity between new and existing customers
Householders who stay loyal to their insurance company can pay £200 a year more for home cover than a new customer, a survey found.
The extra money raked in by penalising long-standing customers is used to boost profits and to subsidise cheap deals to attract new customers.
Consumer group Which? said existing customers were typically paying £270 per year for a combined policy covering buildings and contents insurance. That was £75, or 38 per cent, more than a new customer.
Loyal home insurance customers are losing out by paying more than those taking out new policies, it has emerged
-
Bride, 29, tells how she spent her wedding night on a DRIP…
Infamous kidnap victim left furious after benefactors move…
Mummy, I can hear! Moment £16,000 implants rescue…
Revealed: Family members can claim PPI on behalf of their…
Share this article
Home insurance companies are offering better rates to new customers – while others pay up to £270 more per year
Combined policies that were four to six years old were around £105 a year more expensive than those offered to new customers.
The Which? research found that the combined insurance on a policy that had run for at least 20 years was £396 per year, compared with the £195 available for new customers through price comparison websites – a loyalty penalty of £201.
Earlier this year, the Association of British Insurers and the British Insurance Brokers’ Association announced plans to tackle excessive premium differences between long-standing and new customers.
Source: Read Full Article