A study by consumer group Which? claims home insurance customers who have been with their insurer for more than a year paid on average £75 more than new customers for combined policies.
The data comes from a survey of 5,592 owners of buildings and contents (combined) policies. New customers said they were being charged a median premium of £195, while those who had been with the insurer for one to two years paid an average of £220. If they were loyal for four to six years, the average was £300.
Among the 1,674 respondents owning contents-only policies, new customers paid around £100. The figure rose to £120 after a year, while those who had their policy for four to six years paid £144.
“We recognise that the insurance market is not working as well as it should for many long-standing customers,” said Association of British Insurers (ABI) spokesperson Malcom Tarling, as quoted by the BBC. He said the industry has launched an initiative to help customers get the best deal in a competitive market.
Tarling added that the initiative includes insurers reviewing the policies of customers who have maintained business with them for five or more years to make sure that they get the best deal for their needs.
