35% of customers who bought home insurance direct from their mortgage lender when they last applied are not shopping around and potentially paying more than double the price they need to.
The research from Sainsbury’s Bank Home Insurance indicates that buying home insurance direct from mortgage lenders is popular. Around 45% of home insurance customers opt for policies issued by their lender, the research shows.
But market analysis commissioned by Sainsbury’s Bank Home Insurance illustrates shopping around pays.The average buildings and contents policy from leading mortgage lenders can be as much as double the most competitive offer. Customers buying direct from their lender pay an average £280 a year compared with the lowest premium of £137.
Many of those questioned who bought from their mortgage lender said the process was easier – 24% said they took the offer to save time while nearly one in five (18%) thought it would increase their chances of a successful application.
Shopping around is essential in order to keep control of costs - 79% of home insurance customers have seen their annual premium increase over the past three years with 21% saying prices have risen by more than 10%.
Karen Hogg, Head of Home Insurance at Sainsbury’s Bank, said: “The home insurance market is very competitive so it’s always worth shopping around and comparing prices, particularly when premiums across the market continue to rise.
It can make sense to take the deal on offer from your mortgage lender but only after taking the time to check whether it gives you all the cover you need and is truly competitive.
We’re committed to offering great mortgage deals as well as competitive insurance, especially for Sainsbury’s shoppers who are guaranteed a better quote if they have a Nectar card.“
Shopping around does not have to take a long time and Sainsbury’s Bank Home Insurance’s panel of providers will help by matching customers with the insurer that can provide the best price for their individual circumstances.
Analysis by insurance pricing experts Consumer Intelligence found the average premiums for the major mortgage lenders were 104% higher than the most competitive for buildings and contents; 147% higher for buildings only; and 113% higher for contents only.