In the past three months quotes for buildings and contents insurance have dropped by 2.2%, according to the research from Consumer Intelligence, which also gives customers an idea of how much, on average, people have been paying.
For those customers who have not made claims for buildings or theft, quote premiums fell by between 2% and 4% in the past three months. But those claiming for theft experienced increases of 14% while customers claiming for buildings saw rises of 3%.
The most commonly quoted price for premiums were between £150 and £199 – with 24% of quotes falling within that range.
Just over half of customers (54%) were able to source quotes below £200 in December 2024 – but this compared to 69% in December 2023.
Matthew McMaster, senior insight analyst at Consumer Intelligence, said: “Most of the inflation in quoted premiums happened in the first four months of last year with rest of the year seeing relative stability and decreases.
“The last three months of 2024 saw the entry of two new brands – Super and Epic – from Lemonade and the continued roll out of the company’s most affordable product Lemonade Ace, making them one of the most competitive brands in the marketplace.”
How to lower the cost of your home insurance
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Improve security
Installing CCTV, fitting strong locks, putting security lights in place and even building high fences can help reduce your home insurance premiums. This is because the better the security, the less risk there is of your home being burgled and this goes down well with insurers.
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Calculate costs accurately
Be mindful to correctly calculate the cost of your contents to make sure you don’t over-insure your belongings, something which can increase premiums.
It’s also important not to underinsure too, as this can impact your claims.
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Pay a higher excess
Tweaking your excess – the initial part of the claim you pay yourself – upwards can help reduce the premium on your home insurance.
Keep in mind the cost needs to be affordable for you, so only increase to a level you are comfortable with.
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Pay annually
If possible, pay for your home insurance with one upfront payment rather than monthly. Insurers often charge more for the monthly direct debit option.
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Shop around
The golden rule of buying insurance is to shop around! Don’t automatically opt for the renewal quote from your current insurer – compare it to other policies.
When you do your research, check several comparison sites to ensure you have a broad overview of all the products and the best price.
You can find more information about cutting home insurance costs here.
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