Everyone wants a good deal on their home insurance — but have you ever stopped to consider how much the payment method affects the total cost?
New research shows that paying for your home insurance monthly instead of annually could increase the overall cost by as much as 33%.
For example:
- Contents-only cover: Paying monthly costs an average of £87, compared to £65 when paid annually.
- Buildings-only cover: Monthly payments total around £236, versus £206 for an annual payment.
- Combined buildings and contents cover: Annual payers spend around £230, while those paying monthly pay £280 — a difference of £50 a year.
It’s clear that paying annually can lead to significant savings over time.
Timing Also Matters
The study also revealed that when you buy your policy can make a big difference. Purchasing your home insurance about 28 days before renewal could cut the price by up to 24%, compared to waiting until the last day.
In short, if you want to keep your home insurance affordable:
✅ Pay annually if you can.
✅ Shop early before your renewal date.
A few smart timing and payment choices can make a surprising difference to your wallet.
🚨 Data accurate as of the date of publication
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Services – Essentially Mortgages Q4 2025
