Combining Home and Contents Insurance Might Not Be Saving You Money

7th July, 2009

AA insurance has released research which show more than two-fifths of UK households would save money by purchasing seperate home and contents insurance, rather than going for a combined policy - traditionally seen as a way of cutting insurance costs.

25,000 insurance quotes were compared in the study by the insurance provider throughout the UK in April, May and June 2009 - it showed 41 percent would save money by buying their buildings and contents insurance by different insurers. This figure increased even further when promotional discounts for buying a combined policy were taken out of the equation - to 59 percent.

Director of AA Insurance, Simon Douglas, said:

Many homeowners take out home and contents insurance with the bank or building society they secured their mortgage with, and renew it year by year, without looking for the best deal on the market - AA Insurance have found this applies to around one third of UK households.

Mr Douglas added, "Our study also shows that they would probably get a better deal if they bought their cover elsewhere. But the important thing is that they don't just allow their cover to lapse - recent suggestions that the recession has led up to a fifth of householders to cancel or not renew their cover is worrying, especially at a time when claims for both burglary and weather damage are increasing."

Homeowners should always make sure to check the policy details as well as cost, to make sure they are getting the best home and contents insurance for them.

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