Home insurance companies with the strongest competition are beginning to increase their premiums.

Consumer Intelligence Home Insurance Premium Trends

Consumer Intelligence data reveals that the average premiums for competitive home insurers have decreased by 7.9% in the last six months. The cost of the best home insurance deals has also fallen by 7.9% to £136 during the same period. However, there are indications that premiums from the most competitive providers might be on the rise again.

Market Insights

According to Harriet Devonald, a product manager at Consumer Intelligence, there is a noticeable increase in prices among competitive insurers. For example, popular app-based insurer Getsafe, which had been driving prices down, raised its premiums in October. The index, which monitors the average premiums of the top five competitive home and contents policies, shows that premiums among these providers have increased by 4.1% over the past 12 months.

Regional Analysis

London postcodes continue to be the most expensive areas for home insurance, with residents paying an average of £185 annually for buildings and contents policies. On the other hand, the North East, East Midlands, and West Midlands have the lowest average premiums. Over the years, premiums have decreased by 3.1% since data collection began in 2014.

Demographic Trends

Interestingly, the age of a person does not significantly impact the cost of home insurance, with only a £5 difference between under-50s and over-50s premiums. However, over-50s have seen a higher increase in insurance costs compared to under-50s in the last year.

Property Age Analysis

Newer-build properties are cheaper to insure, with older homes, especially Victorian-era properties, attracting higher insurance costs. While prices for newer properties have remained stable, older properties have seen significant price increases over the past year.

Home Insurance Price Index

The Consumer Intelligence Home Insurance Price Index, based on real customer quotes, is utilized by various organizations as a benchmark for consumer pricing trends. It provides valuable insights to optimize pricing strategies and understand market movements. For more details, download the Home Insurance Price Index.