Churchill Insurance says consumers paying £3bn too much

Britons could save a total of £3 billion on their insurance bills, Churchill Insurance has claimed.

With the New Year just a few weeks away the insurer recommends that people take stock of their finances to see if they could save money.

According to new research Churchill believes individuals could save up to 20 per cent - the equivalent of £150 for most people - by shopping around and buying online.

"The New Year is traditionally the time to make resolutions and to spring clean finances. It's easy for people to make substantial savings on their annual insurance bill by taking a fresh look at their cover, " Frances Browning, spokesperson for Churchill Insurance, said.

As well as shopping around, consumers can save themselves money, without reducing their levels of cover, by simply changing the way they pay their bills.

Insuresupermarket.com has pointed out that by paying for insurance annually consumers can save up to 30 per cent. Making changes including adding locks to doors, telling your insurer you only use the car at weekends, and giving up smoking can also all produce savings on premiums.

Churchill recommends buying car and home insurance online as the firm offers a ten per cent discount for customers who buy over the internet.

Churchill has also announced it will be offering promotional deals on home insurance in January, with up to 20 per cent savings.

Additionally, customers who already have a Churchill home or motor insurance policy could save ten per cent when taking out pet cover in the New Year.