MoneySuperMarket Reveals Regional Winners and Losers as Home Insurance Premiums Tumble

• Average home insurance premiums at four-year low
• London postcodes see substantial falls
• Only Northern Ireland sees home insurance prices increase in last 12 months
• Best prices are for new customers so shopping around is rewarded

UK homeowners should take advantage of the lowest seasonal home insurance premium prices for new customers in four years, according to analysis of more than 14 million home insurance quotes run on MoneySuperMarket from March 2010 to February 2015.

Kevin Pratt, insurance expert at MoneySuperMarket, said: "What worries me is that people who simply renew with the same firm each year won't be seeing the full benefit of the fall in prices. Insurers reserve their best prices to attract new customers, so it's essential to make yourself 'new' by shopping around each year before renewal."

Average home insurance premiums for new customers on the MoneySuperMarket site in winter 2014/15 fell to £115.82 – 22 per cent lower than four years ago (2010/11), when the average winter premium was £148.85, and 27 per cent cheaper than in spring 2010, when prices were a sky-high £158.93.

Annually, premium prices have dropped an average of eight per cent since last winter (2013/14), when the average cost was £125.53.

Regional winners and losers

Analysis by MoneySuperMarket also reveals the regional winners and losers in house insurance premium drops. For example, those in the HR Hereford postcode, shopping around for new cover could benefit from a substantial reduction in price, meaning premiums in winter 2014/15 cost an average £97.57, the only area within our analysis to now have an average home insurance premium price for new customers sub £100. This is £15.85 cheaper than last year, and 35 per cent less than winter 2010/11.

Those in NW London postcodes have experienced the biggest overall reduction (18 per cent) in premium price for new customers year on year, although the rates in this part of the capital are still well above the national average.

Despite the £33 saving in the cost of cover, the average premium of £149.05 is over £30 above the UK average home insurance annual premium price of £115.82. Similarly, W London postcodes recorded a 14 per cent year on year reduction in the price of home cover for new customers this winter, but average premiums are still almost £20 above average.

Kevin Pratt said: "Not all of the top 10 regional winners are seeing premiums below the national average, but the rate at which prices are falling in these areas for customers who shop around is really promising."

On the flipside, homeowners in Northern Ireland have pulled the short straw: their BT postcode is the only one in the UK where an uplift in price has been recorded year on year.

While premiums for new customers are in fact cheaper than many regions, in winter 2014/15 they increased three per cent to £138.02 in BT postcodes, and have only fluctuated marginally since winter 2010. Where average premiums nationally have dropped almost a quarter over the past four years, those in Northern Ireland shopping around for cover have seen a three per cent decrease in this period.

Other areas have witnessed small decreases year on year. For example, home insurance prices in Dorchester slightly reduced below one per cent in winter 2014/15, and home insurance prices for new customers in Hertfordshire's suburban St Albans and Watford dropped around two per cent. In Glasgow prices decreased three per cent, compared to the national average of an eight per cent reduction.

Kevin Pratt continues: "Whether the region you live has seen a price reduction or increase in home insurance premium prices there is still a need to shop around at renewal time to ensure you get the best policy for your home cover needs.

"Also, if you can avoid having to make a claim you'll obviously sidestep a lot of stress and distress – and you'll also put yourself in line for a growing no claims discount that could trim 30 per cent or more off your premium. And it remains the case for all of us that prevention is better than cure, whether that's concerning burglary or the threat of flooding or weather damage, the more effort you make to cut down on the risk of needing to claim the more well off you'll be."

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For further information, please contact:

Katherine Hobby / Jemma Green / Sophie Church

Lansons
020 7566 9704 / 020 7294 3642 / 020 7566 9700

MS-Insure&Utilities@lansons.com

Paul Lawler / Nicki Parry / Kate McCully

0787 237 9545 / 01244 370 318 / 01244 221978

paul.lawler@moneysupermarket.com / Nicola.parry@moneysupermarket.comkate.mccully@moneysupermarket.com