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Home insurance is easiest financial product to switch

13 August 2014
  • 90% of home insurance switchers found the process easy
  • Mortgages and broadband ranked bottom of products ‘easiest to switch’ 
  • 51% of consumers haven’t switched any of the 10 most common financial products in the last 12 months

The majority (90%) of customers who switched home insurance providers in the last 12 months found the process easy, followed by 84% for car insurance switches and 83% for credit cards.  Changing broadband provider (68%) came bottom of the class and 77% of people said they found switching their bank account easy since the seven day switching rules were introduced last September. 

Rank

Financial product switched

Ease of switching in the last 12 months

1

Home insurance

90%

2

Car insurance

84%

3

Credit card

83%

4

Landline phone

80%

5

ISA or savings account

79%

6

Bank account (current account)

77%

7

Energy provider

75%

8

Mobile phone

72%

9

Mortgage

70%

10

Broadband provider   

68%



The research, commissioned by Gocompare.com, also highlighted that just over half (51%) of consumers haven’t switched any of the 10 most common financial products in the last 12 months in order to get a better deal.  Savvy consumers who compare and switch regularly can make some significant savings. According to online independent research, just over half of customers using Gocompare.com save up to £222.66 on their car insurance and up to £72.47 on their home contents and buildings insurance*.

Financial product

People switching in the last 12 months

Car insurance

16%

Energy Provider

15%

Home insurance

13%

Mobile phone

10%

Broadband Provider 

9%

ISA or savings account

7%

Bank account (current account)

7%

Landline telephone

7%

Credit card

5%

Mortgage

2%



Claire Peate, customer insight manager at Gocompare.com, said: “As our survey illustrates, most people find home and car insurance the easiest products to switch.  These types of insurance usually run for a year and towards the end of this period insurers send out renewal packs outlining next year’s premium as well as any changes to the cover provided.  Rather than just accepting your existing provider’s renewal terms, you should check that the deal you’re being offered is competitive.  However, policies vary widely in the levels of cover they provide, so it’s essential to compare products on a like-for-like basis rather than on price alone.  And, if you switch to a new provider, don’t forget to tell your existing insurer; otherwise they may automatically renew your policy.”

Claire Peate continued: “Mortgages ranked bottom on both our tables of products consumers had switched in the last 12 months and products easiest to switch.  New mortgage deals come on the market all the time, and that can mean significant savings for some consumers.  But, before changing your mortgage, you should check whether there are any penalties for switching out of your existing deal.  Some products – discounted or fixed rate mortgages in particular – have early exit penalties which together with new product set up costs, may offset any switching savings.”    

-ends-

Notes to editors:

On 11 July 2014, an online survey was conducted among 2,032 randomly selected British adults age 18+ who are also Springboard United Kingdom Community members. The margin of error—which measures sampling variability—is +/- 2.2%, 19 times out of 20. The results have been statistically weighted according to the most current data on age, gender, region, and education from the most recent census data, to ensure the sample is representative of the entire adult population of the UK. Discrepancies in or between totals are due to rounding.

*Based on online independent research by Consumer Intelligence during 1 June2014 to 30 June 2014:

  • 51% of consumers could save up to £222.66 on their car insurance;
  • 51% of consumers could save up to £72.47 on their home contents and buildings insurance.