Caravan Insurance

Brits could considerably cut their home insurance premiums if only they were willing to spend more time shopping around for the best policy on the market, according to a new survey.

As the cheapest premium available costs only £195.63 and yet the most expensive stands at £308.68, homeowners could save around £112.95 each by carefully choosing the right policy for them - a collective sum of £1.7 billion.

Yet though the idea of shopping around is firmly ensconced among British consumers with regards most financial products, Barclays' study showed this is not the case with home insurance, as 85 per cent of policyholders do not switch their cover at the annual renewal date.

Insurance marketing director Mark Till commented: "It is amazing to see that people are unaware how easily they can switch their home insurance to a better deal.

"And more importantly that it is not just an option when it is time for their annual renewal quote. We actively encourage people to shop around to find the best deal to ensure they get the best value home insurance."

This echoes the recent findings of an AA report, which showed the cost of the cheapest buildings insurance policies fell by 1.19 per cent and contents policies by 1.73 per cent over the second quarter of 2006, illustrating the full benefits of shopping around.