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Home insurance hagglers save more than £80

Bartering and switching leads to big savings

haggling home insurance

Haggling or switching your home insurer can lead to big savings

Haggling with your home insurance provider can typically save you more than £80, Which? research has revealed.

We surveyed 2,010 members of the general public and found that 59% were able to successfully barter for better deals with their home insurer, saving £82 on average. 

Some 36% of policyholders opted to switch to a new provider instead, saving an average of £72. 

Liverpool Victoria customers had the most success – 70% of them who tried bartering were rewarded with a better deal. 

Meanwhile, 68% of Saga customers were able to successfully haggle their premiums down, while 66% of Direct Line and Aviva policyholders negotiated their way to cheaper cover.

Find out more: Best and worst home insurance – 39 insurance companies rated

Cost of cover on the up

The cost of home insurance is rising. The recent increase in insurance premium tax, from 6% to 9.5%, has hiked the average cost of cover by £10 a year.  

Meanwhile, the launch of Flood Re in April could see costs rise further. The scheme aims to help provide affordable home insurance for flood-prone areas, but the cost of cover is expected to rise by £10.50 a year on average to help foot the bill.

In spite of this, many customers still do not challenge their renewal premiums. Some 48% of respondents didn’t haggle with their provider, instead accepting the price they were quoted.

Which? Money editor, Harry Rose said: ‘Homeowners could be saving over £80 a year by challenging their existing home insurance provider or shopping around for a better deal elsewhere. 

‘The recent announcement that insurers must show last year’s premium on renewal letters should also serve as a useful prompt to people that they could be saving money.’

Find out more: Home insurance haggling – get a better deal with our haggling script

Lower your home insurance costs: 5 tips for cheaper cover

Our home insurance experts explain how you can fight back against rising home insurance premiums. 

1. Increase home security

Adding a burglar alarm or a five-lever mortise deadlock to your main doors will make you a more attractive proposition to insurers and cheaper to cover.

2. Make use of price comparison sites 

Check online with comparison sites for quotes first. You can use these prices as a basis for haggling with your current provider.

3. Only get the cover you need

Everyone should consider contents insurance but buildings cover is only for freeholders. If you rent, your landlord should have buildings cover.

4. Do your valuations sums

Many miscalculate the cost of their buildings and contents when applying for insurance. For buildings, provide the rebuild value and not market value. Be careful not to under-insure your contents and the cost of replacing them.

5. Pay annually

Paying in instalments can be more expensive, with APR rates as high as 40%. If possible, pay annually rather than monthly.

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