If you’re a UK homeowner looking to cut costs, here’s some welcome news, home insurance prices have dropped significantly over the past year.
According to the latest Consumer Intelligence Home Insurance Price Index, average quoted premiums for home insurance in the UK have fallen by 13.1% in the last 12 months. In the past three months alone, premiums dropped another 4.8%, showing that insurers are slashing prices to stay competitive.
Why are UK home insurance prices falling?
The main reason behind cheaper home insurance is increased competition among insurance providers. With more insurers fighting for customers, many have reduced their quoted premiums, especially for combined buildings and contents policies.
“More than two-thirds of the most competitive providers cut quoted premiums for combined building and contents policies in the past three months,” said Laura Vas, Senior Insight Analyst at Consumer Intelligence. “We also saw firms reducing premiums in the buildings-only market more substantially than in the contents-only sector.”
What’s the average cost of home insurance in 2025?
Most home insurance quotes are now between £150 and £199, with nearly 29% of quotes in that price range. Even better, 67.3% of UK homeowners were able to find quotes under £200 in September, up from 57.5% just a year earlier.
Where are premiums dropping the most?
The fall in prices has been nationwide, but some regions are benefiting more than others:
• Wales saw the largest annual fall, with premiums down 16.8% year-on-year and 6.8% in the last quarter.
• Nine out of 11 UK regions recorded double-digit declines.
• The North East saw the smallest drop at 2.6% over the past three months.
Which homeowners are seeing the biggest savings?
Both age and property type affect how much your home insurance premium might fall:
• Under-50s saw an average 13.7% annual decline in premiums.
• Over-50s enjoyed a 12.6% reduction.
• Homes built between 1895 and 1910 saw the biggest price cuts, with premiums dropping 16.6% over the past year.
A turnaround after years of rising costs!
While this drop is great news, it follows years of steady increases. Overall, quoted premiums have risen 46.7% since 2014. The recent decline suggests that the home insurance market is finally shifting in favour of consumers again.
What UK homeowners should do now
With insurers competing harder than ever, now is the best time to shop around for home insurance. Even if you’re happy with your current provider, comparing quotes could save you a substantial amount.
Tips to get cheaper home insurance:
• Compare quotes from multiple providers before renewing. (tip; Assured Protect is a single and independent adviser service providing access to numerous insurers and panels!).
• Increase your excess (only if you can afford to pay it in the event of a claim).
• Bundle buildings and contents insurance for potential discounts.
• Improve home security, alarms, locks, and smart systems can lower your risk profile.
The Consumer Intelligence Home Insurance Price Index, used by the Office for National Statistics and major insurers, shows that 2025 has been a great year for homeowners to cut their insurance costs.
Whether you are about to renew your annual policy, or you want us to diarise your renewal so that you don’t miss out on cheaper prices, speak to us now and we’ll show you the best value options.
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