Cheaper home insurance if you club together with your neighbours It is through that this is the first time a mainstream insurer has tied up with a group buying scheme. To date leading group buying sites, such as Groupon, Incahoot and MyLivingSocial, are best known for offering discounts on spa days, mini-breaks and restaurant meals. There have been attempts to harness the powers of group buying to secure cheaper deals on gas and electricity prices, with Which? spearheading The Big Switch last year - and groups such as Incahoot offering discounts off certain tariffs. But despite hundreds signing up to the Big Switch the cheapest deal negotiated was still not the cheapest tariff on the market. However, a search of insurance prices offered on Moneysupermarket.com showed that this L&G deal should prove to be the cheapest rate available, once the 12.5pc discount is deducted. Its "Essential" cover would cost £112.41 for 40-year old teacher living in a semi-detached property in Yeovil (BA20) who is looking for £37,000 contents cover. An equivalent policy from Churchill - the cheapest policy listed on the site - would cost £117.66 Home owners can also buy L&G's "Extra" policy through this scheme, which offers more comprehensive cover - for example it will cover garden equipment and freezer items. Again with this discount this cover would be cheaper than comparable policies, offering the same level of cover and a £100 excess. The table below show how prices compare in other Yeovil postcodes. Cheapest building & contents cover Yeovil (BA21) postcode. £160,000 home, £37,000 contents Premium L&G Essential policy (with max. group discount) L&G Extra policy (with max. group discount) Swiftcover Axa Group buying sites have not been without controversy. Last year Groupon was criticised by the Office of Fair Trading for breaching consumer regulations. These included using inaccurate discount information and offering deals in volumes that retailers couldn't realistically fulfil. Many have also complained that some of these deals require customers to take out the offer at short notice, or at off-peak times - rather than offering discounts of everyday expenses such as utility bills and insurance costs. Bought by Many is a group buying site that specialises in insurance. It launched 18 months ago, although it has only recently arranged its first insurance deals. Aside from this L&G deals it has arranged pet insurance for certain dog-breeders, as well as accident cover for rugby clubs and horse riders. Cheapest contents cover Yeovil (BA21) postcode. £37,000 contents L&G Essential (with max. group buying discount) L&G Extra (with max. group buying discount) More Than Nationwide