The analysis of quotes from 1 March 2010 to 28 February 2013 reveals overall home insurance premiums have fallen by 13%, with average annual premiums now £136 – their lowest since Spring 2010.
Year-on-year, combined home insurance premiums have fallen by 7% or £11, standalone buildings cover is 7% cheaper and standalone contents cover plummeted by 16%.
All 121 postal regions in the UK saw a fall in home insurance premiums between 2011 and 2012 – the first time since Spring 2010 (when the analysis began).
Kingston upon Thames recorded the steepest drop in average premiums, falling by 14% or £26. Other areas which saw big reductions include Halifax and Harrogate, where average premiums both fell by 13%.
Hannah Jones, home insurance expert at MoneySupermarket, said: “It’s the first time since we began monitoring market pricing in 2010 that we’ve seen home insurance premiums decline in all of the 121 postal regions.
“This will come as welcome relief to many consumers who are struggling with the high cost of living and will not necessarily buy home insurance as a result of the pressures on their wallet.
“Competition among providers is continuing to drive down the cost of home insurance policies and it’s important that consumers take advantage of this. Those who become complacent by sticking with existing policies will miss out if they don’t take advantage of shopping around.”
The cheapest postal region in the UK for home insurance is Norwich with an average premium of £113.22, closely followed by Hereford at £114.48. The most expensive postal region for home insurance in the UK is Harrow, where homeowners pay £211.91 on average – 87% more than the cheapest area of the UK.