The price comparison website found that the average policy cost £231 between October and December 2024, compared to £213 in the same period in 2023 – an increase of 8.5%.
Go.Compare’s home insurance price index also found there was a 1.2% increase between Q3 and Q4 of 2024, when average premiums rose from £228 to £231.
Researchers noted that while the cost of contents-only insurance has remained at £66 on average, buildings-only insurance has risen from £204 to £208 over the past quarter.
Analysis of the data shows that policy costs vary significantly across the UK, with Northern Ireland’s residents still paying the most on average (£427), followed by Greater London (£336). Households in the North East benefit from the cheapest premiums, at a typical cost of £190.
The number of bedrooms in your property can also have an impact on the cost of your premium, with the average cost of a one-bedroom home insurance policy coming in at £169, compared to £419 for those with five or more bedrooms.
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Nathan Blackler, spokesperson for Go.Compare Home Insurance, said: “The fact that home insurance premiums have risen again won’t be welcome news to households. Several factors are contributing to this rise – severe weather has led to more claims, while increasing property values, rising rebuilding costs due to inflation, material shortages, and labour expenses have all also played a role.
“While many of these factors are out of our control, there are a couple of things that, as a billpayer, you might be able to do to save some money on your insurance. For instance, if you need both buildings cover and contents cover, then opting for a combined policy rather than purchasing a separate policy is a good place to start.”
How to cut the cost of home insurance
- Pay annually: Spreading the cost over monthly instalments often comes with interest, making it more expensive. Paying your full annual payment upfront will save you money.
- Check your add-ons: Make sure you are only paying for what you need – for example, if you won’t use things like personal possessions cover outside the home or bicycle insurance, then there’s no need to buy extra cover.
- Enhance your home security: Installing burglar alarms, smoke detectors, and secure locks can help lower your premiums while keeping your home safer.
- Stay on top of home maintenance: Regular upkeep reduces the risk of damage and claims, helping to maintain any no-claims discounts you may have.
- Shop around: It can be tempting to let your home insurance policy automatically renew, but that could be costing you. Make sure you compare premium costs when your renewal notice arrives.
