With a relatively mild winter and very few natural disasters or environmental causes of damage or destruction, it was a good winter for those looking to take out contents and building insurance on new or existing homes.
The average insurance policy has fallen by 3.6% in the first quarter of 2015 according to the AA’s annual British Insurance Premium Index. This has dropped the average annual building and contents insurance policy to £158.66.
AA have said that smaller occurrences of snow, rain, hail or high winds have meant that there has been far less damage across the UK this year, which helps to bring down insurance premiums.
Buildings policies dropped almost 10% over the year and contents insurance has fallen 8.2% over the year. These figures bode well for a large drop by the end of the year on overall insurance savings.
Experts have suggested however, that these price drops could be an attempt by insurance providers to build market share with lower cost options in the period when most policies are sold. They expect that in the more quiet months, the prices will rise once more, and consumers should not expect the dip to last.
Insurance companies say that a major contributor in premium prices are false and fraudulent claims made against policies. Without strict enough enforcement, these fake claims that people make in order to get undeserved compensation or rewards are driving up insurance claims that people actually need in order to deal with a difficult or surprise accident.
These companies have been asking for stricter punishment from the government for a while, as it negatively affects both the way in which the public views insurance companies, and also the prices of these premiums which have to rise to cope with the greater levels of claiming that is expected.
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