Inertia - The Enemy Of Your Pocket

The other day I received a renewal quote for my house insurance for £430-odd (GBP). I was somewhat taken aback to find that my very modest home was being insured up to the value of £1,000,000 (GBP)!

Once I got over my shock I discovered that this was the maximum figure and had been applied to ensure that I remained covered despite England’s current rampant house price inflation. Fast though the cost of housing is rising, I think something pretty dramatic would have to happen for the 500% increase needed for me to take advantage of the maximum figure.

Of course I am sure that the insurance company quoted this figure with my best interests at heart, but I can’t help thinking that it is the poor that are subsidizing the rich by paying premiums for cover far in excess of what they need.

Anyway, to cut a long story short, I decided to take advantage of the Internet to shop around. With a few clicks I found in a couple of minutes was able to obtain a quote of £228 (GBP) including some very useful home emergency cover.

How many of us simply renew existing insurances and other contracts just because it’s convenient and we can’t be bothered to shop around? There may have been an excuse in the olden days, but now with the Internet, and the many fine price comparison sites we can find the best deal from the comfort of our armchair with a few clicks of the mouse and keyboard.

Inertia costs the consumer a small fortune and lines the pockets of service providers. Be a wise buyer, it’s easier than you think and may lead to significant savings.

[NB I do not work for moneysupermarket.com and do not receive any commissions from them for business arising from this posting]