Home insurance premiums fall by 6.6%

New research from insurance market research experts Consumer Intelligence reveals that between June 2014 and June 2015, the cheapest home insurance premiums fell by 6.6%. However, just over a third of this fall (35%) happened in just two months – between April and June 2015 – when the average of the lowest five premiums fell by 2.3%.

Overall, the average of the five most competitive home insurance policies in June 2015 was £115, a reduction of £13 a year earlier.

Consumer Intelligence says that with such significant falls in average home insurance premiums, those switching providers could enjoy significant savings.

Consumer Intelligence’s authoritative Switching2 Index, based on responses from more than 11,000 home and motor policyholders, shows 35% of home insurance customers switched in the year to May.  Half (50%) did so to benefit from lower premiums.

Overall, between June 2014 and June 2015, the average of the cheapest five home insurance quotes for those aged over 50 fell by 6.8%.  This age group can now expect to pay on average £106 for their home insurance.  The corresponding figures for people aged 50 and under are 6.3% and £125 respectively.

The findings on premiums are from the Consumer Intelligence Home Insurance Index, which is based on data developed by the research company and which is used by the Office of National Statistics to calculate official inflation statistics.

Ian Hughes, Chief Executive of Consumer Intelligence said: “This fall in premiums can be explained by a big reduction in burglaries, and far fewer claims for flood and storm damage.

“In 1995, just under 9% of homes suffered from a burglary compared to a little under 3% last year.

“Those switching home insurers this year could see significant savings.”