Motor rates also rose in final quarter of 2007
Premiums for both car and home insurance rose in the final quarter of 2007, according to the latest findings from the benchmark AA British Insurance Premium Index show.
Over the past quarter, average quoted premiums for home buildings insurance rose by 1.4%.
This follows a rise of 3.0% over the previous quarter; the largest single increase since the Index began in 1994.
Home contents premiums rose by just 0.4 per cent to £150.57. These rises reflect the £750m domestic property claims following last summer’s floods.
Car insurance premiums also rose – comprehensive by 2.4% and third-party, fire and theft (TPFT) cover by 1.4%.
The AA Index averages premiums from up to 85 motor and 37 home insurance companies and schemes based on a basket of 1,000 car and 750 home risks.
John Close, insurer relations director at the AA said: “Buildings insurance premiums are at their highest since the Index began but I’m surprised that premiums have risen so little over the past quarter.
“I hope that the Government’s Climate Change Bill includes robust provisions to ensure that new buildings are more flood and storm resilient, particularly after the renewed flood threats of the past few days.
“Local authorities must also think through where new housing is built – it will help no-one if families find their homes are uninsurable because of where they are located.”
Car insurance premiums have been steadily rising since April 2006 with average quoted premiums for both comprehensive and TPFT at their highest ever level.
