The latest 'Shoparound' index from AA shows that car insurance premiums fell again in the second quarter of 2018, decreasing the average premium by £18. Home insurance premiums, on the other hand, climbed by 2.3% over the quarter.
Compared to the record high average premium of £726.93 seen at the end of June last year, the cost of comprehensive car insurance has seen a welcome drop of 10.8% to an average of £648.10. The biggest winners among the different age groups are the youngest drivers (aged 17 to 22), who have seen a decrease of 4.1% quarter-on-quarter in June.
Despite this, they are still paying the highest premium, at an average of £1,586.04. In contrast, 60-69-year-old drivers are paying the lowest average premium of £400.36 despite seeing the lowest reduction of just 1.1%.
Of course, car owners will still have to compare car insurance policies and look around to make sure they have a deal that is both affordable and includes everything they need. The recent reform in whiplash claims culture and upcoming Government directives, however, mean that "the outlook for drivers is positive," according to AA's insurance director Janet Connor.
Less positive is the news for homeowners, as both buildings and contents insurance premiums have risen quarter-on-quarter, by 2.3% and 1% respectively. While contents insurance is still 1.7% less costly than at the end of June 2017, buildings insurance premiums are 5.9% higher year-on-year with an average of £113.12.
Much of this is attributed by the AA to the cost of claims related to the big freeze last winter – something that may seem like a lifetime away considering the current temperatures, but is still having a clear effect on the finance market. Now, the hot weather may be perpetuating the problem, with a risk of dried-up soil causing structural damage and subsequent claims.
"However, the industry is well prepared for such an eventuality," said Janet. "The last time there was a significant rise in subsidence claims was in 2006.
Now might be a good time to check that your home is fully insured against such risk."
If your insurance policy is due for renewal soon, now might be a good time to compare car and home insurance providers to find the right product for your needs. If you're not near your renewal date but are worried about subsidence, you could call up your insurance provider to see what can be done.
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