Q1 home premiums up, motor premiums down – Pearson Ham

Pearson Ham’s Q1 Insurance Price Index has found that combined buildings and contents home insurance premiums were up 10% on the previous quarter and by 41% over the year. It said the average premium was now £400. In contrast, it said the motor market had begun to soften, albeit in an irregular fashion.

Data from the index said motor premiums were down slightly in Q1 and attributed this to a fall of 3% in January, although there had been small rises in February and March. It said motor insurance prices were now around 54% higher than they were two years ago, but highlighted that most of the increase occurred last year, when prices rose by 47%.

Stephen Kennedy, director at Pearson Ham Group, said: “The adverse weather conditions experienced in the first quarter caused claims to escalate and for home insurance premiums to surge, compounded by a substantial hike in building materials and labour costs compared to a year ago.

“Conversely, the trajectory for motor insurance premiums has begun to soften, attributed to a stabilisation in the costs of repairs and parts. While motor insurance premiums have passed their highest point, the anticipated timing for lowering of home insurance premiums remains uncertain, indicating a potential prolonged period of elevated costs.”

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