Brits too busy to shop around but it's costing them hundreds

Article date: 8 June 2011

  • New RAC Home Insurance offers shop around service and member offers on other brands worth £500.

New research1 from RAC Home Insurance has found almost a quarter of homeowners (23%) automatically renew their home insurance with their existing provider, rather than shopping around to find a better deal. However, customers could be paying more than they need to.

Analysis by RAC of the difference between the lowest and most expensive quotes in each UK region reveals that homeowners could be paying a price premium of up to 224%2 of what they could be paying by not shopping around for the lowest price.

Of those who do not shop around, 24% say they are “too busy”, and 20% say they are “too lazy”. To take the hassle out of finding the best deal, RAC has launched a new home insurance product which searches a panel of insurers meaning they will do the shopping around for you.

Top five reasons respondents selected for not shopping around on home insurance:

  1. Happy with current provider (38%)
  2. Too busy (24%)
  3. Don’t think I’d get better cover elsewhere (21%)
  4. Too lazy to be bothered (20%)
  5. Don’t think I’d get cheaper cover elsewhere (16%).

Mark Godfrey, head of RAC Insurance said: "Home insurance policies can vary a great deal, so it is essential people compare them not only on price but also on the level of cover they provide. Shopping around doesn’t have to be time consuming and by taking advantage of panels such as ours, that do the work for you, there are significant savings to be made. It is now more important than ever that customers shop around for the best price on their insurance premiums.”

The average amount of time people have been with their current home buildings insurer is just over four years for home contents and buildings insurance. Just 16% of respondents said they had been with their current home insurance provider for less than a year, suggesting that the remainder had stayed with the same insurer when their policy was up for renewal.

However, despite not regularly changing home insurance providers, 71% of homeowners do not believe their loyalty is rewarded. Conversely, customers that take out home insurance with RAC become a member of RAC giving them access to RAC member offers worth £5003.

Other findings from RAC’s consumer research:

  • Savvy women are more likely to shop around (36% compared to 32%) while men are most likely to admit they are "too lazy" (25% of men compared to 13% of women).
  • Older consumers are less likely to switch financial services provider – those aged over 55 are most likely to automatically renew policies (34%) while 25-34 year olds are most likely to shop around for the best price (39%).
  • People in Yorkshire and the Humber are most likely to automatically renew their home insurance (28%) while those in the North East are least likely (18%).

Table 1: Buildings and contents insurance quotes2





Not shopping around premium



















































Table 2: Length of time with current financial services providers


Time (years)

Motor insurer

3 years, 1 month

Home contents insurer

4 years, 1 month

Home buildings insurer

4 years, 5 months

Car breakdown cover

4 years, 11 months

Table 3: Regional home insurance loyalty comparison table


% automatically renew home insurance

Time with current home contents insurer

Time with current home buildings insurer

Yorkshire & Humber


5 years, 5 months

6 years, 1 month

West Midlands


5 years, 2 months

5 years, 5 months

East of England


4 years, 4 months

4 years, 3 months

South West


4 years, 2 months

4 years, 1 month

South East


3 years, 6 months

3 years, 8 months



3 years, 10 months

4 years, 11 months

North West


3 years, 9 months

4 years, 0 months

East Midlands


3 years, 5 months

3 years, 4 months



3 years, 10 months

4 years, 5 months



4 years, 2 months

4 years, 11 months

North East


3 years, 6 months

3 years, 1 month



4 years, 1 month

4 years, 5 months

- ends -

For further information, please contact:

Vicki Burn: RAC Press Office: 01603 684224

Adam Cracknell: RAC Press Office: 01603 684 916

Suman Hughes/Hugh Murphy: The Wriglesworth Consultancy: 020 7427 1400:

Notes to editors:

1Consumer research carried out by YouGov on behalf of RAC among a GB representative sample of 2,000 adults (18+) between 17-19 May 2011

2Quotes taken from the RAC Panel on 25 May 2011. Based on standard buildings and contents cover for a three bed semi-detached house owned by a 35-year-old woman with a mortgage

3RAC Member Offers can be viewed at

About RAC

With around seven million customers, RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists.  Whether it's roadside assistance, insurance, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information - RAC is able to meet motorists' needs.

RAC is committed to providing the very highest levels of service to its customers and ranked first for customer satisfaction by JD Power and Associates' UK Roadside Assistance Study 2006 to 2009. RAC was also the top-named breakdown organisation in the July 2009, January 2010 and July 2010 half-yearly UK Customer Satisfaction Index from the Institute of Customer Service.

RAC was awarded a Which? Best Buy for Breakdown Cover in August 2010, and RAC Insurance has also been awarded the Best Overall Vehicle Insurance Provider 2010/11 by

RAC is part of Aviva, the world's sixth largest insurance group, with more than 53 million customers across Europe, North America and Asia Pacific*.

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* based on gross worldwide premiums at 31 December 2009

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