Save on your home insurance – just by shopping around

Good news on home insurance: average premiums have fallen by over a quarter in the last five years.

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The not-so-good news is that not everyone will see the benefit.

That’s because the biggest savings are made by those who shop around at renewal, rather than simply renewing with the same insurance company.

We analysed more than 2.6 million home insurance quotes run on our site and found that, in spring this year (March to May), premium prices were £116 on average, compared to £159 during the same period in 2014.

Overall, premiums have fallen by 27% (or £44) in the five years since spring 2010.

But policyholders will only see the full benefit of falling prices by hunting across the market for the most competitive deal, especially if they haven’t changed insurer for a number of years.

Insurers tend to reserve their keenest prices to grab the attention of new customers. Existing customers, meanwhile, often see their premiums creep up, year on year, if they simply stay put and renew.

But if you shop around, you effectively make yourself a ‘new’ customer, with all the companies competing for your business. We recommend you go through this process every year to ensure you’re always on the best deal.

Regional winners and losers

Our national analysis of quotes reveals that residents in Bolton postcode BL have seen the only price hike, with £10 a year added to the cost of cover since 2014.

However, home insurance costs in the town have decreased at above average levels since 2010, falling £54 over the five-year period, compared to £44 nationally.

Those living in Kingston-upon-Thames (postcode KT) have benefitted from the largest price drop, with premiums falling by £19 in a year.

Insurers tend to reserve their keenest prices to grab the attention of new customers

However, premiums in this Surrey town, south west of London, are among the highest nationally at £135 – 16% more expensive than the national average.

Homes in Harrow (HA), in north west London, are paying the most costly premiums nationally, at £182 a year on average – that’s 58% above the national average of £116.

It’s good news for those living in Norwich, however. Residents of this fine city can boast the lowest premiums countrywide, with the average policy just £101.

Celebration time

Five years of price cuts to home insurance premiums is certainly something to celebrate. But why the drop?

Prices have been dropping steadily over the past five years thanks to a number of factors. For example, burglary rates have been falling in most areas. And the mild winter of 2014/15 meant fewer claims for flooding and storm damage.

Increased competition in the market is also driving prices down, so now is the time to take control and shop around for a better deal. No matter where you live, it is always worth checking to see if there is money to be saved by switching providers.

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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