ABI warns insurance premium tax rise will increase cost for consumers from November
The cost of home insurance continues to fall, with the average building and contents policy costing £288 in the second quarter, down 2% from a year ago, but unchanged from the previous quarter, according to the latest figures from the ABI.
The ABI said the figures show that home insurance is affordable for consumers, but warned that the increase in insurance premium tax announced in the budget will push up premiums from November.
“The cost of this essential protection for homes and belongings remains stable, meaning people can, on average, insure their homes and belongings for less than the daily cost of a litre of milk, giving them vital peace of mind,” said ABI general insurance manager Mark Shepherd.
“UK consumers benefit from a competitive home insurance market to ensure affordable-priced protection for their homes, but with an increase in insurance premium tax adding £9.48 to the average premium from November, this will mean a further increase in costs for customers.”
The average annual premium for a buildings-only policy was £238, down 1.2% from a year earlier, but up 5.3% from the first quarter, according to the ABI’s Quarterly Average Household Premium Tracker.
Contents-only insurance fell 5.3% from a year ago to £125, but was up 4.2% from the first quarter.