Low home insurance prices aren't always best value

When the time comes to renew home insurance a first port of call for many people is a price comparison website – but is that enough to get the cover you need at a fair price?

On the face of it, shopping around for the best deal is a reasonable thing to do and many of these websites claim to offer a quick and simple way to assess multiple providers.

But while price is an important factor, it’s not the only one - customers need policies which suit their needs and this is where the limitations of these websites are exposed.

Did you know?

Independent consumer champion Which? raises the following points:

  • No single price comparison site trawls the entire market for financial products in every category
  • Some major financial product providers, including NFU Mutual, choose not to be featured on any price comparison sites
  • Double check your preference settings - the amount of excess you set (the first part of a claim you pay yourself) or choosing to pay your premiums monthly or annually can have a big impact on any quotes
  • Price comparison websites are set up to find the cheapest deals for financial products, but these may not always provide the level of cover or the standard of customer service you would expect
  • Quality is as important as cost, so focus on getting value for money - not the cheapest deals - when you buy financial products.

The Association of British Insurers advises: “If you decide to shop around, make sure you compare the cover, not just the price. Insurance is a very competitive market, usually with many different policies and options on offer. So it is vital that, if you shop around, you make sure you compare the different policies available to ensure that the policy you choose meets your needs.”

Value is about more than price

When the time comes to renew your insurance, there are several questions you should ask of any insurer you’re considering. Taking the time to have a proper conversation can give you clarity and reassurance about what cover you actually need.

Q. Is this insurance right for me?

You should be able to understand the levels of cover being offered and check the exclusions (things you’re not insured for). This makes sure you get the features you need and you don’t pay more for unnecessary extras.

Your home and possessions are unique so it makes sense to deal with an insurer which understands you and the things which are valuable to you. By fully understanding your circumstances it is more likely your insurer will give you the protection you need.

Q. Will you be there when I need you most?

Insurers reveal their true worth when the time comes to make a claim. The last thing you want in your hour of need is an insurer which feels distant or even evasive. This is why it’s important to choose an insurer who you can feel confident will be in your corner working to get you back to normal as soon as possible.

Q. Is it worth it?

Knowing the price of something does not necessarily mean the same as knowing its value. At NFU Mutual we always aim to provide the best cover at a price which offers real value.

It can be easy to be seduced by a low cost – we all love a bargain. But always be clear exactly what is on offer. Check for any hidden costs, such as charges for payment by direct debit and mid-term policy adjustments. And ask if you will be rewarded with discounts for your continued loyalty as a customer.

Read more about our home insurance or contact your local Agent and start the conversation.