Payouts on motor and home insurance are being cut back by £1.2 billion a year, according to new findings.

In the last five years claims from 5.74 million home insurance customers and 5.07 million car insurance customers were not paid in full, says MoneyExpert.com.

The shortfall on home claims amounted to around £3.59 billion and up to £2.72 billion was cut from claims made on motor policies.

Per claim, the average shortfall was £672 for home insurance and £537 for motor insurance (after taking into account excesses agreed with insurers).

The comparison data company is warning insurance customers to check the details of their cover rather than just focusing on the price.

"Taking some time to establish the level of cover you need as well as exactly what you are covered for and what you are not covered for is a worthwhile investment" said Tim Berry from MoneyExpert.com.

But it is not all bad news, as around a third of motor insurance claims made over the last five years were settled in full while one in five home insurance claims were also paid out without any cutbacks.