Home Insurance Prices Rise

The average price of both building and contents insurance has risen for the first time since 2012, according to the AA British Insurance Premium Index.

Their Shoparound average is based on the five cheapest quotes from both direct insurers and price comparison sites. 

They've seen a rise of 1.3% and expect that an Insurance Premium Tax will add another £5 to the average policy in November

Janet Connor, managing director of AA Insurance said: "The stealthy imposition of a 58% increase in insurance premium tax (from 6% to 9.5%) was not expected and it will add around £5 to the average home policy think insurers will have little choice but to pass it on to customers. And in 2016, 'Flood Re' - the new measure to protect home most at risk of flooding – will be launched.  This will be funded from the market to the tune of £10 for each policy, putting more upward pressure on premiums."