Good weather sees insurance premiums fall

Adam Williams
Written By:
Adam Williams

Good weather over the winter has seen the average home insurance premium fall during the first three months of the year.

Research by the AA said the downward trend had started at the end of 2011 and rates had continued to fall in the first quarter of 2015.

The cost of a typical home buildings and contents insurance policy fell by 3.6%, or £6, to £158.66 over the last year.

During the same period the typical combined policy dropped by 9.6%, equivalent to £17, when a consumer shopped around for the cheapest deal.

Janet Connor, managing director of AA Insurance, said good weather conditions had reduced the number of claims for damage.

“Home premiums are most likely to be affected by extremes of weather and the recent winter has on the whole, been notable for its lack of heavy rain, snow, winds and extreme temperatures,” she said.

“Nevertheless, climate change is a reality leading to some parts of the world suffering catastrophic weather events over recent months.  This should serve as a reminder that the weather can produce unexpected extremes and the UK is not immune.

“Home insurance generally serves home owners well when there is flood or storm damage but the fact is, claims over the past three years have been well within insurers’ capacity and as a result, premiums have fallen.”