Home insurance getting cheaper

12th July, 2005

The price of home insurance is dropping according to a new report out today.

The AA's British Insurance Premium Index reveals that the average cost of home buildings insurance has fallen for the sixth consecutive quarter to £203.

The savings represent the cheapest rates since the AA index began 11 years ago.

Home contents insurance also fell to £148, the fourth consecutive quarterly fall.

Kevin Sinclair, managing director of AA Insurance discussed the possible reasons for the decline.

"While falling crime rates and few weather-related claims over recent years have contributed to falling premiums, many providers have also introduced discounts for buying online," he explained.

However, while he recognised that home insurance rates were low, he also warned of changing weather patterns which could cause damage to houses.

Mr Sinclair added that eventually homeowners would have to pick up the cost for the rise in damage, suggesting to consumers that it might be best to take advantage of today's cheaper rates.

 

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