The market often seems to be full of negativity when it comes to the cost of insurance, so it's always nice when something positive comes along. Well, we've got that kind of news story for you right now, with the cost of home and car insurance having fallen by 6.8% in real terms over the last year.
The figures, from the British Insurance Brokers' Association (BIBA) and the Acturis Insurance Price Index, show that premiums fell by 4.9% in the second quarter of the year compared with the same period a year ago. This, coupled with the current inflation rate of 1.9%, equates to a real term saving of nearly 7% in the last year.
The reduced cost of car insurance premiums has been driving this overall drop, with this sector of the market seeing premiums fall by 5.6% in the second quarter of 2014. Home insurance costs are reducing too, albeit to a lesser extent, with premiums falling by 4.2% in the same three-month period.
This drop in premiums can only be good news for consumers as it means more money in their pockets, and the industry itself also welcomes the findings. Graeme Trudgill, BIBA's executive director, commented: "Overall, this is great news for customers and shows that the Government and industry initiatives are working to reduce the cost of motor insurance."
They've certainly had the desired effect, and it's hoped that this reduction will continue in the months to come. Steve White, BIBA's chief executive, added: "We'll watch household premiums with interest to see if the slowdown in the reduction of premiums is a one-off or whether the downward trend will continue."
Quite simply, if you looked for a car or home insurance quote right now, chances are you'll end up paying less than you did a year ago. The savings can be marked, particularly when inflation is added into the equation, and that can do wonders for your household budget.
Of course, to really benefit from these reduced premiums, you need to make sure you thoroughly compare the options. Different firms will always offer different prices, so it makes sense to see what else is out there rather than blindly renewing – even if it looks like a great deal, it could be worth looking at the alternatives.
Compare car and home insurance premiums to see how much you could save.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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