Insurers are offering discounts as high as 35 per cent for people who buy contents cover online as a price war breaks out, new analysis* from MoneyExpert.com shows.
The independent financial comparison website says average discounts from firms which allow you to buy online are currently 13.7 per cent with Tesco and Churchill among the insurers offering the biggest money-off deals. Tescoís Home Insurance will give discounts of up to 35 per cent while Churchill offers 30 per cent.
Research** shows average annual contents insurance premiums are currently around £148 ñ a 35 per cent discount on that would be worth more than £50. However consumers have to look hard to find a firm offering discounts for buying contents insurance online ñ just 18 per cent of home contents policies on the market offer money-off for buying online.
Sean Gardner, Chief Executive of MoneyExpert.com, said: ìInsurers can afford to offer discounts to customers buying online because processing an online transaction costs them less. With average discounts of 13.7 per cent it makes sense for consumers to take advantage.
ìHowever it remains the case that buying contents insurance purely on the basis of the cheapest deal is not always the best advice. The biggest test of an insurance policy is always when it comes time to make a claim.
ìWeíd urge consumers to look carefully at the cover they need and make sure before they buy that there wonít be any nasty surprises when it is time to make a claim. If thereís also a discount for buying online then thatís a nice bonus.”
MoneyExpert.com analysis shows that out of 212 standard home contents policies on the market around 78 offer the chance to buy online. Out of that 78 around 38 then offer discounts for buying online. As well as Tesco and Churchill other firms offering substantial discounts for buying online include 25 per cent from Saga on its Cover Plus and Home Insurance policies; 25 per cent on MoreTh>nís Home Insurance policy; and 25 per cent off from Halifaxís Home Insurance policy.
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* MoneyExpert.com analysis of the Defaqto Aequos Database 9th February 2007
** AA Insurance Index