Quarterly data released today by the UK’s leading price comparison website, MoneySuperMarket, reveals that the average combined (buildings and contents) home insurance policy has increased by 25% over the last three years.
The Home Insurance Price Index is based on analysis of over six million home insurance quotes run on MoneySuperMarket. The data reveals that the average combined home insurance policy now stands at £144.70, 25% more than this time three years ago when it was £115.80. In the last year alone, average premiums have risen by 13%, from £128.10 to £144.70.
Those living in Sunderland and Durham pay the least to insure their home, at £118.97 and £119.22 respectively. Newcastle residents pay £121.77 on average, followed by Stoke-on-Trent (£122.08) and Carlisle (£123.20). Londoners pay the most, with those in North West London forking out £268.10 each year – more than twice as much as someone living in Sunderland.
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Our data shows that premiums have increased by a quarter over the last three years, with London remaining the most expensive area to insure a home. This could be due to higher burglary rates in affluent areas and higher building and repair costs.
“Earlier this month, the FCA ruled that around six million customers are negatively impacted by insurers’ dual pricing practices because they automatically renew with the same firm rather than shop around – meaning they’re potentially missing out on £1.2bn a year in savings. With some insurance providers reserving their best offers for new customers, it’s worthwhile shopping around when renewing to make sure you get the best deal for you.”
MoneySuperMarket recently launched an exclusive home insurance incentive with Tesco Bank. New customers who purchase a combined buildings and contents insurance policy with Tesco Bank, exclusively through MoneySuperMarket, will receive a 10% discount on their premium price.