British consumers are pouring millions of pounds down the drain each year by remaining loyal to their insurance company and not comparing deals from other providers, Confused.com has found.

Homeowners are wasting the most – £508million a year – by failing to compare home insurance deals before accepting their renewal quote, the comparison website says.

Home insurance is one area that a quarter of UK households have used to cut back on their outgoings to weather the recession by doing away with cover all together, but this is false economy, confused.com warns, urging people to see what else is available first.

‘Insurance dieting’ is risky and unnecessary, it says, as consumers could save up to £180 on their premiums by comparing home insurance quotes with a comparison website, which could mean they do not have to cancel it.

Darren Black, head of home insurance at Confused.com said: “Our figures prove loyalty doesn’t pay. A massive amount of money is being wasted by people renewing year after year,” he said, and “it’s never been easier to search the market for insurance.”

Motorists are also wasting money on renewals, throwing £411million out of the window instead of driving down the cost by comparing car insurance quotes first.

They could save more than £200 by shopping around, Confused.com says, but 60 per cent of car owners still fail to compare quotes at renewal time.

Travellers could cut the cost of planning a holiday by comparing the different travel insurance deals around, the study shows, because currently just 14 per cent are buying their cover from a comparison website, suggesting that many are not bothering to shop around.

About a quarter buy travel insurance direct from the insurer, but about the same number take out the travel insurance offered by their tour operator or travel agent, which, Confused.com warns, can cost up to 500 per cent more than getting it from a comparison website.

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