Tax rises drive up home insurance premiums
31st May 2017
Home insurance prices are increasing due to an impact of government tax rises, according to insurance market research agency Consumer Intelligence.
Home insurance premiums rose fastest for over-50 householders with above-inflation growth of 3.6% to £117 in the year to April 2017, compared with just 1% for under-50s to £124.
Annual premium prices rose by 2% to £121 in the past year, with prices increasing by just 0.2% in the first 3 months of this year.
- the North East (3.3%) and Yorkshire & Humberside (3.2%) saw the biggest increase in premiums over the last year
- Londoners (£144) still pay the most for home insurance premiums.
Consumer Intelligence expects the increase in insurance premium tax (IPT) – from 10% to 12% from 1 June 2017 – will continue to push prices further.
John Blevins, consumer intelligence pricing expert at Consumer Intelligence, said:
“It is worth noting IPT rates have pushed premiums up by 2% in the last 12 months and we expect premiums to rise further in June when it increases to 12%.
“There is no indication prices will come down and new rules making insurers include last year’s premium with renewals may have some impact on new business rates.”
Contact us to discuss how these changes will affect you and your business.