Brits urged to stop paying common household insurance that's a 'waste of money'

Households across Britain could be spending unnecessary cash on a common insurance that may be "a complete waste of money". New research from Which? has found that most households lose money by purchasing boiler cover, with some people wasting hundreds on the insurance. The consumer champion brand said annual boiler insurance usually totals around £950, while a pay-as-you-go model charges a yearly rate of £395 if no repairs are needed, rising to £551 for one repair, £707 for two and £863 for three.

Sky News' Money Blog suggested that the figures revealed the insurance to be a "complete waste of money", especially since boilers don't require frequent repair work. "A well-maintained boiler shouldn't need frequent repairs," Emily Seymour, energy editor for Which? said. "Our research finds that 59% of people with boilers up to six years old haven't needed any boiler repairs since it was installed."

"So, unless your boiler is particularly fault-prone, you shouldn't need to spend a fortune on its maintenance," Ms Seymour added.

"An annual boiler service is a much better and cheaper way to ensure your boiler runs smoothly and safely for a fraction of the cost."

Pay-as-you-go models generally include five annual services alongside however many repairs are needed.

Some homeowners might prefer to pay for boiler insurance for their peace of mind, Which? acknowledged, particularly to ensure cover in perilous scenarios such as a breakdown in the middle of winter.

In such circumstances, it's also important to look at the details of insurance policies, the consumer champion warned.

"If it's not covered already, you may find that you can cheaply add boiler cover to another insurance policy, such as your home insurance, or bundle it into other offerings, rather than as a standalone policy," Ms Seymour said.

"Alternatively, try self-insuring by putting aside some money each month into savings, instead of paying for a policy."

Those who do opt for boiler insurance can also help themselves out by removing any unnecessary extras, haggling to get the best deal and paying annually if possible.