Mortgage customers multiply cost of home insurance when opting for lenders' policies 

Mortgage customers multiply cost of home insurance when opting for lenders' policies 

31 October 2017

One in three customers buying home insurance direct from their lender did not shop around  

More than one in three (35%) customers who bought home insurance direct from their mortgage lender when they last applied are not shopping around and potentially paying more than double the price they need to (1).

The research from Sainsbury’s Bank Home Insurance, which provides quotes from a panel of home insurers and rewards customers with a Nectar card with a further guaranteed discount on their insurance premium (3), indicates that buying home insurance direct from mortgage lenders is popular. Around 45% of home insurance customers opt for policies issued by their lender, the research shows.

But market analysis (2) commissioned by Sainsbury’s Bank Home Insurance illustrates shopping around pays. The average buildings and contents policy from leading mortgage lenders can be as much as double the most competitive offer. Customers buying direct from their lender pay an average £280 a year compared with the lowest premium of £137.

Many of those questioned who bought from their mortgage lender said the process was easier – 24% said they took the offer to save time while nearly one in five (18%) thought it would increase their chances of a successful application.

Shopping around is essential in order to keep control of costs - 79% of home insurance customers have seen their annual premium increase over the past three years with 21% saying prices have risen by more than 10%(1).

Karen Hogg, Head of Home Insurance at Sainsbury’s Bank, said: “The home insurance market is very competitive so it’s always worth shopping around and comparing prices, particularly when premiums across the market continue to rise.

“It can make sense to take the deal on offer from your mortgage lender but only after taking the time to check whether it gives you all the cover you need and is truly competitive.

“We’re committed to offering great mortgage deals as well as competitive insurance, especially for Sainsbury’s shoppers who are guaranteed a better quote if they have a Nectar card.“

Shopping around does not have to take a long time and Sainsbury’s Bank Home Insurance’s panel of providers will help by matching customers with the insurer that can provide the best price for their individual circumstances.

Analysis by insurance pricing experts Consumer Intelligence found the average premiums for the major mortgage lenders were 104% higher than the most competitive for buildings and contents; 147% higher for buildings only; and 113% higher for contents only.



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For further information, please contact:
Sainsbury’s Bank press office 0131 286 0010 / [email protected]

Notes to editor:

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.

Rates and information correct at date of issue.

Notes to editors:
(1) Sainsbury’s Bank commissioned Opinium Research to survey 2,004 nationally representative UK adults aged 18+ between October 3rd and 6th 2017. Opinium Research is a member of the British Polling Council and abides by its rules
(2) Consumer Intelligence analysed average premiums for the leading mortgage lenders across three typical risk scenarios for buildings and contents; buildings only; and contents only and compared with the five most competitive for the same risk scenarios and the cheapest.
(3) Sainsbury’s Bank Home and Car Insurance is arranged and administered by Sainsbury’s Bank and is underwritten by a carefully selected range of insurers. When customers get a quote we will tell customers who their insurer is before they buy the policy. Specially selected range of underwriting insurance partners: AXA, Covea, Zurich, Allianz, LV=, Sabre, Markerstudy, RSA, Legal & General, Modus and Prestige. Guaranteed discount for Nectar card holders: The discount is based on information related to you and the transactions you’ve made with Sainsbury’s supermarkets and Sainsbury’s Bank using your Nectar card. For more information go to sainsburysbank.co.uk/nectar

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.


About Sainsbury’s Bank

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at www.sainsburysbank.co.uk/media

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.

Sainsbury's Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury's Bank plc is covered by the Financial Services Compensation Scheme (FSCS).
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