The average price paid by UK households for both their home buildings and contents insurance so far in 2022 fell to record lows according to the ABI’s latest Household Insurance Premium Tracker, published today. The ABI’s Tracker is the only survey that looks at the price consumers pay for their cover, rather than the price they are quoted.
The drop will have given some much-needed relief to many households facing rising energy and food bills, with inflation currently at its highest rate for thirty years.
The latest Tracker shows that in the first quarter of 2022:
The average price paid for buildings insurance was £225. This was a 7% drop over the year since quarter one of 2021. The current average premium is now at its lowest since the ABI started collecting this data back in 2012.
The average price paid for contents insurance, at £114, fell by 11% since the same quarter, 2021. Like buildings cover, this stands at its lowest since ABI started collecting the data.
For combined buildings and content insurance, the average premium was £307, down 2% over the last year, to its lowest level in four years.
Laura Hughes, the ABI’s Manager, General Insurance, said: “Many households struggling to cope with the cost-of-living crisis, will be reassured that the cost of protecting their home and their possessions has remained competitive, despite the increasing costs of construction materials and labour. The recent storms in February, which it is estimated will lead to insurers paying out £500 million to affected customers, is a dramatic reminder of the vital financial protection home insurance provides against unexpected and costly events.
“It is too early to assess the impact of the Financial Conduct Authority’s changes to the rules on pricing of home and motor insurance introduced on 1 January 2022. While, as the regulator has said, this could lead to some consumers paying higher prices if they used to benefit from significant new business discounts, for some it could still pay to shop around for the policy that best meets their needs.”
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