Shopping around 'can achieve savings on insurance costs'

By investing the time and effort to scour the market, consumers could find they make significant savings on the amount of money they spend on insurance.

Taking the time to compare accounts could prove to be of particular benefit to insurance customers, it has been suggested.

Although Serena Cowdy acknowledges that many "just can't be bothered" to look for a more competitive deal, she highlights in an article for lovemoney.com that doing so "can be a quick, simple and highly gratifying experience".

Indeed, she notes that she was able to achieve a significant saving on her home insurance policy in the latter stages of 2009, as shopping around is also the most effective way that car insurance customers can reduce the cost of cover when renewing their policy.

"In their efforts to steal business from their competitors, insurers very often give new customers much better deals than existing customers," Ms Cowdy points out.

A previous lovemoney.com article noted that while insurance is crucial not only for providing financial security but also offering peace of mind, consumers should endeavour to take a level of cover that is relevant to their specific needs.

By Kate Guthrie