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Cost of home insurance falling

By Lucy Bower

26 April2021

With inflation high and the recent news that we're back in recession, consumers might be relieved to hear that not everything is getting more expensive. According to recent research into annual buildings and contents insurance policies, these policies are, on average, cheaper now than they were at the start of the year.

The AA British Insurance Premium Index shows how much insurers are charging for their policies on average.

The 'Shoparound summary' compares the five cheapest home and contents insurance quotes from a range of insurers. It was found, on average, that the average cost of these policies was more or less the same as in January, with buildings cover now 0.5% more expensive and contents insurance 1.7% cheaper.

Buildings insurance is a necessity for homeowners, but how much can you expect to pay? According to the AA, the average of the five cheapest buildings insurance policies works out at 181 - and contents cover at 109.

Simon Douglas, director of AA Insurance, commented: "The market average premium has risen by only 67 since 1994, when the quarterly AA Index started - an average increase of less than 4 per year. Over the same period, the market average premium for comprehensive car insurance has risen by over 64 per year."

Tags: insurance, home insurance, insurance policy, price, cost, money, how much, AA

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