Here’s a guide to some of the factors that affect prices from one year to the next, including how your changing needs can cause your premium to go up or down.
Insurance is all about risk, so insurance providers constantly analyse and assess everything they can to evaluate this risk. This is why it’s important for you to keep the details outlined below up to date via MySaga so we can give you our best price for your current circumstances.
Any changes to your circumstances or home situation can have an affect on the price you pay. Here are some examples:
Change of address
If you've moved house, whether to the next postcode or the next county, many factors can change. Crime rates and the number of claims per household, as well as the house type, can all adjust your price.
Changes to your property
If you've added an extension or converted a room, this can change your property value or its rebuild costs. In turn this could affect how much you pay for your insurance.
How busy your home is
Changing from full-time employment to part-time or retired means you are at home more. On the plus side, there's less chance of break-ins, but the downside is that there's more opportunity to damage things!
If you have our Saga Plus cover level, your price is fixed for three years. So if nothing changes, your price won’t.
Adding things to your cover, such as legal protection or home emergency cover, will increase your price.
Changing circumstances in the wider world
There are other influences on the cost of your home insurance that are not a result of anything you’ve done personally. From nationwide and regional statistics to the state of the economy, these external factors all contribute to changes in your price:
Insurance Premium Tax (IPT)
Your home insurance is subject to Insurance Premium Tax, which has doubled to 12% since 2015 and can change with every government budget.
Newly published data can affect the cost of your home insurance. This might be public information about reported crime figures or industry research about the number of claims made in your neighbourhood.
Cost of repairs
Repairing damaged homes is becoming more expensive as houses and their contents are now much higher spec. Plus, labour costs to rebuild and refit homes have to be factored in.
If other properties in your area are prone to flooding or subsidence, yours might fall under the same catchment area or be regarded as a similar risk.
Insurance businesses have overheads so, naturally, each policy contributes to that. Any increases in the cost of office space, staff wages or operating systems may also affect the cost of your insurance.