Millions of people overcharged by home insurance firms – here’s how you could save £110 a year
Citizens' Advice finds older people in particular are at risk of getting hit in the pocket when it comes to renewing their premiums
UP to 13MILLION households are being overcharged for their home insurance - simply for renewing their existing policy.
On average, homeowners are being overcharged by £110 a year by falling into the loyalty trap, new analysis from Citizens Advice has revealed.
It said older people are particularly at risk of being hit in the pocket, with 40 per cent of people over 65 having the same policy for more than five years.
That means they could be paying as much as 70 per cent more than a new customer would be for the same policy.
Auto-renewing your home or car insurance policy is a big no-no if you want to cut down on your costs.
Research from comparison website GoCompare found that Brits were chucking away £260 a year by letting their car insurance premiums auto-renew.
It also found that insurance customers were caught in a "vicious cycle" of monthly payments, paying £113 more on average when compared to those who pay in one go.
Earlier this year, city watchdog, the Financial Conduct Authority (FCA) introduced new rules which aimed to make it clearer to customers how much their premium would go up by if they renewed.
Firms were required to show last year's premium when it came to renewal time and encourage customers to shop around for the best deal.
But some firms haven't been following the rules properly and Citizens' Advice has now called on the the regulator to make sure all customers avoid the loyalty trap.
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Gillian Guy, chief exec of Citizens' Advice, said: “Home insurance companies are taking advantage of people’s loyalty, and it’s older people who are suffering the most.
“The FCA must stop home insurance providers overcharging customers. Vulnerable customers are the hardest hit and must be protected from this unfair practice.”
The charity found that consumers are left baffled about their home insurance policies.
Only half of customers were confident they could identify unfair charges in their premium.
How to cut your home and car insurance bill
You're throwing good money away if you let your insurance premiums auto renew. Here's what you can do to save money.
Shop around: Never accept the premium that is offered by your current insurer and never auto-renew. Use a price comparison site like or to see what deal you can get. If your insurer can't match it, then switch.
Improve security: Adding an imobiliser to your car or an alarm to your home can bring down the price of your premium. Try not to make a claim as the fewer claims you make, the lower your premium will be.
Pay in one go: If you can afford to pay your premium in a lump sum, then do so as you will save money over the course of the year.
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