Martin Lewis' 'golden rule' to renewing your home insurance

Martin Lewis' 'golden rule' to renewing your home insurance

Money Saving Expert Martin Lewis has revealed some extremely helpful advice for renewing your home insurance and why you should always use multiple price comparison sites.

Speaking to Davina McCall, who was filling in for Holly Willoughby alongside Phillip Schofield, Martin revealed the ‘price walking’ technique used by some insurers which could see you paying hundreds more if you choose to auto renew.

“You get your quote in the first year and it will be competitive,” Martin told the duo.

“And if you don’t change the year after that, they walk the price up slowly, maybe 25 per cent more, the year after a little bit more, until after five years, it can be 50 per cent more than your first quote, without any reason.”

In the video above, Martin reveals his golden rule to renewing your home insurance.

Martin revealed his ‘golden rule’ to making sure you don’t fall for price walking insurers:

“The golden rule, when it comes to getting home insurance, is never just auto renew.

“Always go and check whether there are cheaper prices out there.”

One customer got in touch with Martin to ask what they can do when their current insurer is offering new customers the same deal for cheaper.

“Apply as a new customer!” he said. “You just go for the new offer on the comparison site or wherever you were using.

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“That’s the farce here, effectively, there’s a fine for apathy, laziness and ignorance that insurers like to dwell on people.

“You have to be an active switching consumer to get the best deals.”

Martin then revealed the key processes to finding the best deal:

“Timing is very important. I would say to anyone who hasn’t changed insurers in the last year, you should be looking now.

‘You get a sweet spot, at three weeks before you renew, 21 days or either side, if you’re looking at new quotes,

‘As you get closer to your renewal date after that, your price begins to go up until it’s nearly double the amount than the day before renewal.’

Martin also sounded a warning to those loyal to a certain price comparison site:

“Don’t just use one price comparison site.

“Comparison sites, aren’t really comparison sites, they’re market places.

“First of all, they don’t all cover the same companies, so covering more than one gives you many more insurers.

“Rules say, they (comparison sites) can’t be more expensive than going direct, but they can have their own price with individual insurers.

“So, different comparison sites, may give you different prices, for the same insurer. So, I would always use two or three of the big names, then I would add in Direct Line and Aviva who aren’t on comparison sites, and that should give you a good spread.”

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