HOME INSURANCE PREMIUMS ON THE RISE BUT THE SAVINGS DIFFERENCE BETWEEN THE AVERAGE AND CHEAPEST POLICY WIDENS

Published: 09/05/2022
  • Cost of average home insurance policy increases to £186 year-on-year in Q1 2022 (January-March), up from £180  
  • Cheapest premium typically available has also risen to £156 in Q1 2022, up from £153 the year before 
  • The difference in cost between both the cheapest and average home insurance premium – the “savings variable” - has grown from £27 to £30 year-on-year 
  • London sees the highest average home insurance premiums at £256 

03 May 2022 - comparethemarket.com’s latest quarterly Home Premiums Index shows that the average annual home insurance premium has risen year-on-year, with policies increasing to £186 in Q1 2022 (January – March), up from £180 in Q1 2021. On a quarterly basis (October – December 2021), average premiums rose from £167 – an increase of 11%.

The cheapest available home insurance premiums also increased, both annually and quarterly, from £153 in Q1 2021 to £156 in Q1 2022. Between Q4 2021 and Q1 2022, prices increased by 10% from £141.  

However, the difference in cost between the cheapest and average home insurance premium – the “savings variable” - has also risen year-on-year from £27 to £30. This means homeowners could find greater savings by shopping around online and comparing policies. 

  Cheapest home insurance premium Average home insurance premium  Savings difference (between average and cheapest premium)
Q1 2021 (January-March)  £153 £180  £27 
Q1 2022 (January-March) £156  £186  £30 

London sees highest home insurance premiums

London has the highest average home insurance premiums, at £208, whereas the North East has the lowest average premium at £126. London is also where the highest amount of savings could be made by switching to the cheapest premium, with a savings difference of £48. 

Region Cheapest premium Average premium available Savings difference (between average and cheapest premium)
Greater London  £208 £256 £48
Northern Ireland £210 £254 £44
South East £174 £207 £33
East Anglia £169 £202 £32
Scotland £152 £181 £29
South West £146 £174 £28
Wales £150 £178 £27
Yorkshire And The Humber £150 £177 £26
East Midlands £148 £174 £25
North West £145 £171 £25
West Midlands £142 £165 £23
North East £126 £146 £19

Alex Hasty, director at comparethemarket.com, said:  

“Household budgets are being squeezed from rising living costs, and, with home insurance premiums on the rise, it’s vital that households look for savings wherever possible. With the difference in cost between the average and cheapest home insurance premium increasing, this means homeowners could make greater savings when switching ahead of renewal. Shopping around online remains one of the best ways to cut the cost of insurance and households could save an average of £150 if they switch to the cheapest motor and home insurance providers.”

Notes to Editors

All data is sourced from comparethemarket.com.

Methodology 

The Home Premium Index by comparethemarket.com tracks the savings difference between the average cheapest quotes and average quotes across all home insurance premiums.  It monitors prices throughout the year and compares differences year-on-year and quarter-on-quarter.  

When the “average price” is referred to, this is the mean average of the top five cheapest prices presented to a customer, where a consumer has clicked through to buy. Buying from the top five cheapest prices presented represents 90% of all home insurance sales. When the “cheapest price” is referred to, this is the average cheapest price presented, where a customer has clicked through to buy. 

The quarterly home premiums index calculates the cost of premiums where the customer has clicked through to buy the policy. If the average premium cost was instead calculated on the basis of all prices returned, then the average cost would be significantly higher. 

About comparethemarket.com 

comparethemarket.com was launched in 2006 and has grown rapidly over the past sixteen years to become one of the UK’s leading price comparison websites.

comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.

comparethemarket.com actively works with its brand partners to help provide great services to customers.

comparethemarket.com is a trading name of Compare The Market Limited. Registered in England No. 10636682. Registered Office: Pegasus House, Bakewell Road, Orton Southgate, Peterborough, PE2 6YS. Compare The Market Limited is authorised and regulated by the Financial Conduct Authority for insurance distribution (Firm Reference Number: 778488). Energy and Digital products are not regulated by the FCA.