By Nathalie Knowles Money Box

Halifax customers may be able to save hundreds of pounds on their home insurance, but the bank is not telling them so.

Britain's fifth largest bank confirmed to the BBC's Money Box programme it can offer some customers significantly reduced premiums.

It can do this because of new systems of assessment brought in after the merger with Bank of Scotland.

But the bank also admitted it is not telling its 1.5m insurance customers. And it has no plans to do so.

Cheaper premium

Moneybox listener Debora bought her North London house five years ago and took out insurance from her lender, Halifax.

This year when she got her £500 annual renewal notice, she decided to query it.

She was astonished to be told that in fact she need only pay around £300.

Debora thinks customers should take note.

It should not be up to us to chase them

Halifax customer Debora

"The policy is identical. I would really like to know whether there was ever any intention to let customers know that they could get cheaper premiums just by asking for a review.

"It should not be up to us to chase them. Halifax could be making thousands and thousands of pounds.

"Anybody who has an existing policy with Halifax should get on the phone and ask for a review of that policy."

So if you have had insurance with Halifax for some years and have not questioned the premium you are paying, it may be time to do so.

But you could save even more by looking around.

Independent advice

The British Insurance Brokers Association's Graham Trudgill feels people should get independent advice.

"What the policyholder needs to do is to speak to... an independent broker who will look at all the options, not just that of the bank's policy only."

"There is still a misconception that the policyholder does still have to insure with the bank. But that is not the case.

"If the policyholder arranges his policy elsewhere and then tells the bank of his insurance details they will just note the mortgage, simple as that."

"Up or down"

When Money Box approached Halifax, a spokesman invited customers to contact them but warned the quote could go up or down.

"Quotes for existing customers in their renewal notice are based on information we already hold.

"This is less than that required for underwriting the new policies.

"Because the new quote requires further information from the customer we are not able to quote for this within the renewal notice for all customers.

"We do invite customers to contact us about their premium in the renewal notice.

"A quote based on more specific underwriting criteria could result in the premium going up or down."