Home insurance is a prime area where companies use ‘price walking’ – where if you stick with them, every annual renewal, they walk the price up and up and up – never too quickly, to easily raise the price. After the first year you may pay £25 more, but by year five it can easily be 50 percent or more.
The regulator Financial Conduct Authority (FCA) has been looking into addressing this, and a report with remedies was meant to be published at the beginning of this year, but it’s been delayed, like everything else, due to coronavirus.
Like good comedy, it’s all about timing
If you haven’t switched in over a year then check asap, as savings by switching can be far bigger than any exit penalties you may have to pay.
But if you’re coming up for renewal soon, then the best time to get a new quote is around 21 days before renewal (a couple of days either side is fine), so get this in your diary. The price gradually drops until that date, but then starts to rise rapidly the nearer you get to renewal, leave it until the day before renewal and the price can more than double as you’re seen as greater risk.
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