Financial guru Martin Lewis has issued a stark and "perverse" warning to UK households, urging them to take one crucial step that could slash hundreds of pounds off their annual insurance bills.
The 'Mistake' of Auto-Renewal
In his latest advice, the founder of Money Saving Expert (MSE) cautioned that simply allowing your car or home insurance to auto-renew with your existing provider is likely a costly error. He highlighted that while the process of renewing policies can be tedious, complacency is hitting people in the pocket.
"I've a perverse warning for you," Lewis said. "We're so conditioned to price hikes, that if your renewal stays the same you'll probably go 'yay'. Yet that's a mistake."
Why Comparing Now is Crucial
The warning comes with solid market data to back it up. According to pricing consultancy Pearson Ham, cited by MSE, the cost of both car and home insurance has fallen by more than 10 per cent compared to this time last year, and is even cheaper than two years ago.
Lewis emphasised that this market shift means consumers should be paying less. "The market has dropped, you should be paying less. So, always compare to check if you can save," he advised.
Real Savings and Practical Tools
MSE recommends using its own Compare+ online tools for car and home insurance to quickly check the best available deals. These tools not only compare prices across the market but also suggest other cost-cutting measures, such as the optimal time to renew.
The results speak for themselves. One MSE reader, Navshad, reported saving £510 on car insurance by checking 26 days before renewal. Another, Rosemary, saved just over £300 on buildings and contents cover.
Could Bundling Save You More?
MSE also explored whether combining car and home insurance with a single provider could lead to further discounts. While some firms like Admiral and LV offer combined policies, and others like Direct Line, Aviva, and Churchill provide multi-policy discounts, it's not a guaranteed win.
"It's trial and error," the MSE team noted, advising shoppers to get separate quotes first using comparison tools before investigating bundle deals. One success story saw a reader named Jess save £700 by combining her van and home insurance.
The core message remains clear: in a falling market, loyalty rarely pays. Taking a few minutes to compare prices could prevent you from overpaying by a significant sum.
