Martin Lewis issues 'worst thing you can do' warning that could cost you £100s

08 November 2023 , 09:26

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Martin Lewis presenting the Martin Lewis Money Show Live on ITV (Image: ITV)

Martin Lewis has shared the “worst thing you can do” when it comes to purchasing car or home insurance.

The MoneySavingExpert.com founder addressed soaring insurance prices during his latest Martin Lewis Money Show Live broadcast on ITV yesterday evening. He explained how car insurance prices are up 61% on average in just one year, while home insurance prices have increased by 33%.

More price rises are also expected to come, he warned, meaning it is important for you to cut costs where you can. Martin explained how the UK has now entered a "huge insurance inflationary period" and urged people to always compare prices when it comes to renewing their policies.

He said: “Don't assume your renewal price is the cheapest price you can get on home and car insurance. The worst thing you can do is doing nothing. Never auto-renew without checking elsewhere."

The hikes come despite the Financial Conduct Authority (FCA) banning practices that saw existing customers charged more for their renewal than what they would have done if they were a new customer.

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Martin explained how the new rules in question are "channel specific", meaning new customers cannot receive cheaper prices than those on existing plans if they go through exactly the same process. But he added that prices can vary hugely by firm and warned people "need to investigate the market" if they want a cheaper policy.

Car insurance is a legal requirement in the UK and has to be renewed yearly. The three main types are: third party, third party fire and theft, and fully comprehensive. Home insurance covers you if something bad happens to your property, such as a fire, burglary or storm damage. The three main types are: buildings insurance, contents insurance and combined buildings and contents insurance.

When the time comes for your insurance policy to be renewed, you should use a comparison website to check for prices - some of the most popular ones include Go Compare, Confused.com and Compare the Market. Once you’ve found the best deal elsewhere, call up your current provider to see if they will beat it. If you do go with a new policy, you should see if you'd be eligible for cashback on sites such as Topcashback and Quidco.

Levi Winchester