Brits could be paying a third more for home insurance with monthly payments, new data shows

New data from Go.Compare home insurance has revealed that Brits could be spending 33% more for their home insurance a year by opting for monthly payments instead of annual.*

The data shows that across the three main types of home insurance cover - buildings and contents, building only and contents only - people paying monthly spend more. 

Those with contents-only insurance are hit the hardest, with an annual average cost of £65 versus £87 if they paid per month, which is a 34% increase. 

For those with combined buildings and contents cover, those who pay monthly spend £50 more than those who opt for annual payment, a 22% increase. Buildings-only cover sees a 15% increase for monthly payments.

Nathan Blackler, Go.Compare’s home insurance expert, commented on the findings:

“While paying monthly for your home insurance might make the whole thing seem more manageable, it’s likely to be costing you more in the long run. This data shows that paying annually can help you make savings if it’s something you can do. 

“If your finances allow, paying all in one go at the start of the year can reduce the total cost of your premium significantly, by more than a third in the case of contents only cover. Even small monthly differences can quickly add up over the course of a year, particularly when interest or admin fees are added to each instalment. 

“We know monthly payments work better for some households’ budgeting, and there are valid reasons for spreading the cost. But it’s worth checking what the total premium will be over the full term, and shopping around to find insurers that charge lower or even no interest on monthly plans.

“There are other things you can do to try and save money on your home insurance premiums, too. Here are our top tips: 

• Time when you buy: Purchasing your home insurance policy around 28 days before it’s due for renewal could save you some money. Our research shows you pay 24% more by leaving it till the day it’s due, as it jumps from £200 to £247.

• Improve home security: Your insurer will ask about the security of your home when calculating your premium - a higher level of security makes your home less susceptible to burglaries and therefore could lower your premium. 
• Only pay for what you need: There are lots of optional extras that you could add to your home insurance, but you might not need them all. Check what your policy covers and think about what you really need.”

For more top tips on how to get cheaper home insurance visit: https://www.gocompare.com/home-insurance/guide/top-tips-for-cheaper-home-insurance/