Renters can pay up to 11 per cent extra for car insurance compared to homeowners, our research has revealed – as insurers charge a premium for what they see as a greater risk.
The little-known pricing quirk means renters can end up paying considerably more for cover – but some but some insurers will not charge them any extra, meaning shopping around is essential.
Insurers charge renters more because they cause more claims, on average.
This is for a wide range of reasons, though how insurers set their pricing is a tightly-guarded commercial secret.