Home insurance stays competitive
Home insurance continues to show exceptional value for money, with many good deals still available, the latest findings from the AA's British Insurance Premium Index show.While the average quoted premium for an annual buildings insurance policy rose by 5.3 per cent to £218.04 with some insurers sharply increasing premiums, the Shoparound Index (an average of the lowest three premiums for each ‘customer' in a basket of 750 risks) showed a fall of just under 0.7 per cent to £122.77.
The average premium quoted for contents insurance fell by 1.6 per cent to £122.98 while the Shoparound index dropped sharply by nearly 3.9 per cent to £67.14.
Premiums for combined buildings and contents policies reflect these movements with a 1.5 per cent rise in the average quoted premium to £290.62 and a fall of 1.1 per cent in the Shoparound rate to £184.04
"These figures underline the fiercely competitive nature of the home insurance market. We're continuing to see offers aimed at attracting new customers which has contributed to falling premiums but people should still shop around as these don't always represent the best deal. And while competition will continue to ensure great value for money over coming months, I don't believe that such discounting is sustainable in the longer term - indeed, there are signs that some insurers are beginning to increase their premiums."
Simon Douglas points out that burglary and other crime usually increases during times of recession and that increased numbers of claims can be expected over coming months.
"But, the industry must continue to offer value for money at a time when families are looking at their outgoings. It is important that they aren't tempted to ignore their insurance renewal, just when they may need protection most.
"It's also vital that the industry demonstrates that insurance is about value and service, not just price. When you make a claim it is the wrong time to realise that you have sacrificed benefits in order to obtain the keenest price."