Home insurance costs fall but not for everyone
Home insurance customers are saving money as price cuts in the past six months feed through to lower bills, but some are still seeing price rises, according to Consumer Intelligence.
The insurance data analytics business found that average home insurance costs were virtually unchanged in the year to July recording below inflation increases of just 0.3% to £132, with premiums falling 2.6% in the past six months as competition intensified.
It noted that, on average, customers are now paying around 3.1% less for home insurance than in February 2014.
But not everyone is benefiting – customers in London and the East Midlands are still seeing premiums increasing. Londoners pay the highest annual bills of £173 and are seeing annual increases of 5.2% while prices rose by 2.6% in the East Midlands.
The biggest falls in premiums are in Wales where prices are down by 2.7% in the year to July and in the North East where they are 1.7% lower. Customers in the South West however are seeing the lowest bills of £117.
Those with newer homes are not experiencing cheaper cover though. Those with properties built after 2000 are seeing annual price increases of 2.6% and prices are rising for all homes built after 1970. Premiums for older homes are generally falling with the biggest premium reductions of 2.6% for those built before 1895.
John Blevins, Consumer Intelligence pricing expert, said: “Home insurance premiums peaked in December last year and have been falling ever since with a very competitive market ensuring prices are fairly static.
“There have been warnings from some insurers about adverse weather claims hitting profits but that has not translated into premium increases and without any significant external factors such as tax increases claims experience will continue to dictate prices.
“Differences in regional prices are based on claims experience which is influenced mainly by crime rates and particular local incidents such as the impact of bad weather with London and the East Midlands the biggest exceptions to the general reduction in prices.”