Under 25s and over 65s seek out most savings on home insurance
British homeowners have cut the value of their home contents insurance cover by up to a third over the last year in an attempt to save money, according to UK insurance intermediary Kwik Fit Insurance (KFI).
The company, based in Lanarkshire, Scotland, studied home insurance renewal patterns across 24 major UK towns and cities over the last 12 months and found that more than half had reduced their policies; while other areas of the country have ramped up their home insurance.
And the study also showed that younger people and pensioners are looking to cut their outgoings by decreasing their cover levels.
Down in the valleys
In Swansea, which saw the greatest reduction, policyholders had decreased the amount covered by 31 per cent.
Elsewhere, in Hull, KFI recorded an average drop in cover of 23 per cent, while in Liverpool and Bradford homeowners have reduced their policy value by only slightly less, at 22 per cent.
Other areas to cut their home insurance cover included Sunderland (12.8%), Bristol (11.9%) and Wolverhampton (11.4%).
Brendan Devine, managing director of KFI, said: “Understandably people are looking to reduce their costs, and lowering the value of your home insurance will certainly bring down your premium.”
“But we’d urge people to think carefully about their cover, since even a small percentage reduction can mean a few thousand pounds for which they may not be insured if the worst comes to the worst.”
Newcastle covers up
Elsewhere in the country, some cities increased their policies, with people in Newcastle most keen to protect their home contents – increasing cover by 13 per cent.
In Plymouth, home insurance contents leapt up in value by 12.4 per cent; in London and Coventry the increase was 11 per cent, and Nottingham saw a 10 per cent rise.
Brendan Devine said increases could be down to homeowners looking to protect themselves from having to replace expensive possessions they might not otherwise insure.
He said: “It’s interesting to see how different areas of the country are responding to money pressures some are looking at the long-term and seeking to protect what they have, while others are taking a more short-term view and cutting costs now in the hope the storm will pass quickly.
“Our advice would always be that people should never leave themselves under-insured. What can seem like a quick saving can turn out to be a real false economy if something goes wrong and you’re liable for expensive repairs or replacements.”
Only a number?
The survey also showed that young people under 25 and people older than 66 were the most likely to have cut back on their home insurance..
Policyholders aged 18-25 reduced their cover by eight per cent, with those aged between 66 and 75 also keen to cut costs in second place with cuts of more than six per cent.
Also cutting their cover were 26-35-year-olds, who reduced their policy values by 4.3 per cent.
But KFI’s research suggests at the opposite of the age spectrum, those aged 75 and over are taking a more cautious approach; five per cent increased their contents cover.
Brendan said: “Homeowners up to their mid-30s are clearly keen to save money, especially since even getting on the property ladder is costly and difficult for most younger people.”
“Older people are perceived as being more cautious, and this is certainly borne out by the over 75s who are looking to increase their contents cover, but go back by only ten years and it’s a very different picture, which could suggest that younger pensioners are finding it difficult to cope.”
Issued by The BIG Partnership on behalf of Kwik-Fit Insurance.
For further information, please contact Michelle Holton, Jane Robertson or Bryan Garvie at The BIG Partnership on 0141 333 9585 or [email protected]
Notes to editors:
Kwik Fit Insurance Services was launched in 1995 and has grown to become one of the UK’s leading motor insurance distributors, as well as a major presence in other insurance markets such as home and car insurance.
The company’s award-winning call centre at Uddingston, Lanarkshire, now employs almost 1000 people, handling 10 million calls every year.
Since its launch in 1995, Kwik Fit Insurance Services has grown and developed into one of Scotland’s most dynamic contact centres.
Kwik Fit Insurance Services is part of the Kwik Fit Group owned by private equity firm PAI Partners.
The philosophy of the business is to provide the best possible service to customers.
ENDS
Kwik-Fit Insurance
1 Masterton Way
Tannochside Business Park
Uddingston
Scotland
G71 5PU
Phone Number: 01698 786369
Email: [email protected]
Website: www.kwik-fitinsurance.com
