It pays to shop for home cover

New research reveals the benefits of shopping around for home insurance, with the average difference in premiums between the cheapest and most expensive providers a staggering 345%, or £443 a year.

The study also highlights the benefits of paying for buildings and contents insurance via a single annual payment, as this is typically around 5% cheaper than paying on a monthly basis.

Research company Consumer Intelligence looked at a range of different risks and geographical locations, and found that the most competitive insurer of all those it examined was insurance broker Budget Insurance Services - which many people won't have heard of. In second place came Esure, whose ads are fronted by film director and food critic Michael Winner.

Third, fourth and fifth places were taken by Axa, Norwich Union Direct and Egg respectively, though this is based on paying annually. In terms of paying monthly, the third, fourth and fifth slots were taken by Norwich Union Direct, Axa and the RAC. Direct Line and Admiral came sixth and seventh.

The latest AA insurance premium index found that the buildings insurance "shoparound premium" (an average of the lowest three prices) rose a few pence to £133.46 last month from £133.10 in October last year, while the contents cover shoparound premium also crept up slightly to £88.78.