(Press Association) Nearly a third of UK households have stuck with their home insurance provider for more than five years – potentially paying more than they need to, Citizens Advice has found.
Around 31% have had their policy for more than five years – meaning they could be paying 70% more than a new customer would, it said.
For someone with the cheapest policy for buildings and contents insurance, this could be an extra £110 a year, on average.
Citizens Advice said companies can make large hikes in premiums when customers renew their existing policies rather than shopping around for a cheaper deal.
It said vulnerable consumers must be protected from the “loyalty penalty”.
Older people are particularly likely to have stuck with their provider, the research found.
Some 40% of people aged over 65 have had their home insurance policy for more than five years.
Taking advantage of loyalty
Gillian Guy, chief executive of Citizens Advice, said: “Home insurance companies are taking advantage of people’s loyalty, and it’s older people who are suffering the most.”