Customers told not to accept rise in home insurance premiums

Home insurance policy holders have been told they should switch providers if they are faced with increases in premiums.

A recent survey by AA Insurance showed that combined buildings and contents cover increased by eight per cent between October and January, with the trend expected to continue.

Lee Griffin, Business Development Director of insurance comparison website Gocompare.com, thinks consumers should not have to accept any rise, saying that they should vote with their feet and switch.

He added: Consumers who automatically accept their renewal premiums for home and car insurance this year could end up paying a high price for their loyalty.

AA Insurance believes the increases in premiums have come about because insurance companies had been heavily discounting prices until recently and also because recent weather conditions had led to more claims, as well as a rise in the cost of repairing buildings.

However, it also noted that, by shopping around for insurance quotes, better deals than the average rise could still be found.