Friday 7th July 2006
Insurance premiums have remained static, despite predictions of increases, new figures from the AA show.
Industry reports that claim costs have been rising above premium rates were widely thought to mean a premium hike would be inevitable.
However, the AA British Insurance Premium Index has revealed that average home insurance premiums fell half a per cent during the last quarter.
Contents cover premiums showed a modest increase.
The report found that home insurance is "remarkable value for money"; based on the fact that both contents and buildings cover costs little more than it did in 1994, when the Index began.
"Home premiums have shown little movement although there is serious industry concern about the longer term implications of global warming," said Kevin Sinclair, managing director of AA insurance.
"But the industry has become very sophisticated in the way it identifies risk," he continued, "using tools such as flood mapping and analysis of local crime levels to pinpoint the areas most at risk."
The average premium for buildings cover is £207.10, the AA found, and the average cost of contents cover is now £152.06.
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