- Londoners revealed as the worst at searching for savings on Home insurance – potentially wasting over £8.5m on their bills
- Yorkshire & Humberside leads comparethemarket.com’s ‘Home Insurance Switching Index’
- Lower average income thought to have impact, as cost pressures force many to find better deals
London has been revealed as the most apathetic part of the UK when it comes to home insurance switching, according to comparethemarket.com’s ‘Home Insurance Switching Index’. The index, which breaks down regions’ home insurance switching levels, shows that Yorkshire & Humberside has the most active residents when it comes to hunting for the best deals.
The cost of this inertia by Londoners is clear to see; if London residents matched Yorkshire and The Humberside’s score on the ‘Home Insurance Switching Index’, then they could stand to save more than £8.5 million collectively on their annual home insurance bills.
comparethemarket.com’s index demonstrates the levels of home insurance switching, calculated using the activity of its customer base in each region of the UK and the number of households in those regions. While Yorkshire & Humberside leads the country, the North East and East Midlands are following close behind.
London gained a remarkably poor score, considerably lower than the closest rival. This relative inactivity from the residents of the capital, compared to other regions, could be linked to the higher average income that has created an element of complacency when it comes to personal finance.
Commenting on the data, Damian Reilly, Head of Home Insurance, comparethemarket.com, said, “There appears to be a clear North vs. South divide when it comes to the willingness to shop around for the best deals on the market. Whilst there is almost certainly an element of socio-economic factors at play, with average wages in London significantly higher than those areas which top the leader board for the savviest insurance shoppers, the financial inertia of Londoners does mean they are potentially paying over £8.5 million of unnecessary insurance costs.”
This data comes as the Chancellor’s 3.5% rise in Insurance Premium Tax, announced at the Summer Budget, is set to be implemented on 1 November. Further research by comparethemarket.com indicated that the rise would cost consumers £1.8 billion across the country, which equates to around £68 per household.
Damian Reilly adds, “Keeping a close eye on your finances, particularly your insurance bills, is more important than ever with the hike Insurance Premium Tax taking effect on 1 November. The estimated £68 increase in cost per household will be a burden for many consumers that don’t search out the best deals on the market.”
All data has been compiled by comparethemarket.com. The index is based on more than 2 million quotes.
The ‘Home Insurance Switching Index’ was calculated using the difference between the proportion of comparethemarket.com’s total home insurance sales in an area as a percentage of all UK sales, and the proportion of households in an area as a percentage of all UK households. One hundred was then added to each resulting percentage and then divided by two.
comparethemarket.com was launched in 2006 and has grown rapidly over the past nine years to become one of the UK’s leading price comparison websites.
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