Home insurance premiums continue to tumble
The overall cost of home insurance continues to fall year-on-year, according to analysis of over three million home insurance enquiries run on MoneySuperMarket.
The analysis covering June 1st 2012 to August 31st 2013 reveals overall home insurance premiums for those looking for new insurance have fallen by six per cent since this time last year, with average annual premiums now available at £137. The cost of combined buildings and contents insurance decreased by £11 or seven per cent, while premiums for buildings insurance fell by £12 or 11 per cent. On a yearly basis, the cost of contents insurance has increased by four per cent or £3 but, within the last three months, the cost of contents insurance has actually risen by 10 per cent.
The analysis also looked at the varying cost of home insurance in different regions and found that NR (Norwich) is the cheapest postal area for home insurance, with annual premiums available for £115 in summer 2013. At the other end of the scale, the HA (Harrow) postal area topped the chart as the most expensive for home insurance with an average quote of £200, though this will be welcome relief for residents who were paying 11 per cent or £25 more on average last year.
Kevin Pratt, home insurance expert at MoneySuperMarket, said: "The year on year view of overall home insurance premiums shows the positive picture of lower prices compared to 12 months ago for those shopping around for new home insurance. Those that will benefit most from the falling prices on MoneySuperMarket are those who have never switched their cover and have seen an increase in their premium at renewal time.
"The data does show that during the summer quarter, there was a slight increase in insurance prices in June, but this has started to decline again through July and August. Falling premium prices for new customers just shows the value of shopping around and not accepting the renewal quote, even if it's less than last year, the price could be even lower with a different insurer so comparing the quotes on offer could save you even more money. With contents insurance bucking the trend it is crucial consumers tackle this head on and seek out the best value cover."
Kevin Pratt added: "Across the UK home insurance premiums are decreasing in price. The area you live in impacts the price you pay for insurance, and certain areas cost substantially more than others, but there are steps that everyone can take to keep the cost at a minimum.
"Insurers want your business and reward new customers, so take advantage of this by shopping around for the best deal, and MoneySuperMarket can help with comparing insurance policies. People using our comparison tool typically save £113 a year on their home insurance. Also, taking out building and contents cover with the same insurer often works out cheaper than separate policies. Insurers also take into account the types of locks on your doors and windows, as well as alarms and other security measures. Essentially, the more you do to deter thieves, the lower your insurance premium should be."