Go online for best home insurance deals
By Robert Adungo 19.12.2011
Those who buy home insurance online enjoy greater choice than people buying from high street providers. Find out why here.
Convenience is one of the factors that attract millions of people to the internet every day as the web continues to play an increasingly vital role in modern lifestyles. Online shopping accounts for a huge percentage of time spent on the web, with many people now preferring this to bricks and mortar outlets.
Britons spend billions of pounds every month on the internet, buying everything from groceries and clothing to shoes and home insurance. In August 2011, for example, they spent £5.2 billion online, according to figures from the IMRG Capgemini e-Retail Sales Index.
Indeed, the protection market is being shaken up as wider take-up of the internet across the UK, better security and growing confidence among consumers encourage people to research and buy cover online. And many are comfortable doing this without professional advice, according to independent financial research company Defaqto.
In fact, more than eight in ten (85%) people are comfortable with purchasing home insurance online, a sign that they "are confident when it comes to navigating these financial products" without guidance from a product provider or intermediary, says the firm.
Greater choice
Speaking to a home insurance provider or intermediary is recommended for some people in certain circumstances, but you should not be pressured into buying on the spot. Those who decide to buy online enjoy one crucial thing – greater choice. And with choice, comes the possibility of securing the best deal, be it the cheapest or the one that offers value for money.
Financial services providers are not known for missing an opportunity to make money; home insurance providers have been quick to respond to changing trends and there are now a myriad of products available online. Defaqto states that their number has experienced significant growth in the last three years.
For example, there has been a 19% jump in the number of standard buildings insurance policies available since 2008 from 226 to 270 this year and many of these can be found online. In the same period, the number of firms offering buildings cover grew from 152 to 179 - an 18% expansion.
Meanwhile, the number of providers offering home contents insurance has increased by 11% from 161 to 179 over the same duration. These companies are now offering 276 products compared to 240 in 2008, equivalent to 15% growth in the number of policies.
Use a comparison site
The easiest way to identify these products and see what they offer is by using price comparison sites. Many of them compare the whole market and are likely to help you identify not only the cheapest deals, but those offering value for money and the ones most suitable for your circumstances.
However, it is advisable not to restrict your dealings to just one comparison site. Although they compare the whole market, they use different computer algorithms to deliver their results and some have exclusive deals with insurance providers. So what appears as the cheapest or best deal on one comparison site may not even show on another.