People aged over 50 were the age group facing the biggest jumps in their insurance premiums in January, analysis has found.
The average home insurance premium offered to over-50s increased by 5.8% in the 12 months to January 2022, meaning people in this age group face paying £161 on average, according to research company Consumer Intelligence.
Over-50s drivers have seen an increase of 2.7% for motor insurance over the same 12-month period, with the average price put at £360.
Over the next year, underlying upward pressure on costs will likely see both markets harden, and consumers pay more for their motor and home insurance
Overall, in the 12 months to January 2022 the average premium for home insurance rose 2.9% to reach £154. The average premium for motor insurance decreased by 2.8% to reach £705.
A pricing shake-up came into force at the start of this year, meaning insurers are now required to offer renewing customers a price that is no higher than they would pay as a new customer.
This put an end to “price walking”, whereby firms were hiking prices for loyal customers year after year. But those who regularly shop around may find the savings on offer are smaller.
Consumer Intelligence market insight expert, Michael Miskelly, said: “Over the coming months we will most likely see premium fluctuation at brand level as providers jostle to find their place in the new competitive landscape.
“However, over the next year, underlying upward pressure on costs will likely see both markets harden, and consumers pay more for their motor and home insurance. Factors contributing to this include the rising cost of motor repairs and parts, building materials and labour, among other things.”
Consumer Intelligence made the calculations by looking at prices offered to thousands of home owners and motorists by price comparison websites and direct insurers and averaging out a selection of the cheapest.
Ele Clark, senior money editor at Which?, said: “With the cost-of-living crisis biting, these jumps in home and car insurance premiums will be unwelcome for many households that may already be struggling with soaring energy bills and food price increases.
“Customers should try to negotiate a cheaper insurance price – it can be as simple as ringing your insurer up and asking if they can do better than the renewal offer, and giving examples of deals you’ve seen elsewhere. Anyone who’s unhappy with how their insurer has handled a claim should always shop around.”
