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Home insurance premiums continue to fall

Home insurance premiums continue to fall

Category: Home insurance

Updated: 24/10/2013
First Published: 24/10/2013

MONEYFACTS ARCHIVE
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According to research from the AA, the price of home insurance premiums has continued to fall during the third quarter of 2013 – continuing the downward trend that started in 2012.

The latest British Insurance Premium Index, the benchmark for the industry, has found that average buildings insurance premiums have fallen by 0.8% over the last quarter and by 5.8% since October last year, whilst contents cover has dropped by 1.8% and 3.8% over the same periods.

For those that have combined buildings and contents cover, the average householder can expect to pay £172.86 – down 6.6% in 12 months.

The drop in rates is thought to be down to the relatively good weather we've had over the last year, meaning there hasn't been an influx of major claims to push up premiums, whilst the increase in competition only adds to the value for money that can be found.

Simon Douglas, director of AA insurance, is encouraged by the news and said it would "take a very severe winter to reverse the downward trend in the short term [as we're] in a competitive market and rate reductions are still being made."

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