Home insurance companies make all of their profits from the loyalty penalty, according to research from Citizens Advice.
The charity, which submitted a super-complaint slamming the practice of overcharging loyal customers to the Competitions and Markets Authority (CMA) in September 2018, said it had found that home insurers make over £1bn a year from loyal consumers holding policies for six years or more.
The research also revealed that loyal customers are paying an annual average premium of
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