Freezing Winter weather blamed for Home Insurance increases
While the country struggles to come to terms with the proposed cuts in government spending and the knock on effect throughout the economy in terms of wage cuts and redundancies, it is quite galling to hear latest reports from the insurance market regarding increases in insurance premiums this year.
Motorists have been among the worst affected throughout the economic crisis, between the oil producers and government fuel duty we have recently witnessed fuel prices escalating to over the £6 per gallon barrier.
The latest budget news deferring the anticipated fuel duty increase in April was expected by most and does little to quell the anger of motorists parting with half their wages to fill up their vehicles.
Motor insurance premiums have risen on average by 31% over 2010 figures and could be set to rise further still in the light of the recent EU ruling stating that insurance companies cannot treat male and female drivers differently when supplying motor insurance products.
The latest reports from the insurance industry suggest that buying home insurance is likely to cost us more than last year, although it has to be said that the average rise of 6% in this market is a little more palatable than the huge increase in motor policies.
Reports suggest that a typical average premium for buildings and contents insurance has risen from £142 last year to £151 in 2011, not a great deal, but still an extra expense that most of us could do without in the current climate.
It appears that insurers are keen to recoup the cost of claims made during the freezing winter weather last year, but with extreme and severe weather in the UK becoming a trend, the costs of insuring our homes is set to increase indefinitely.
Another area that has been attributed to the rise in premiums is fraudulent claims which appear to increase in times of recession, one insurer claiming that these claims cost each of us £44 on our annual premium.
There are of course various websites available that products and we would highly recommend that you shop around for the best deals available.
The majority of insurance companies prefer to insure both buildings and contents in one package and will offer a reasonable discount when these two products are bought together.
If you are about to replace an existing policy it is a good idea to have your previous documents available when checking out alternative insurers, this will enable you to compare services and premiums on a like for like basis and give peace of mind that you are at least getting the same cover as previously held.