The average quoted premium for a new home insurance policy has dropped sharply again over the first three months of 2015, continuing a downward trend that has continued since the end of 2011.

The latest benchmark British Insurance Premium Index shows that the average quote for a combined home buildings and contents insurance policy fell by 3.6% or £6 to £158.66. Over 12 months, the typical ‘shop around’ quote for combined policy fell by 9.6%, or nearly £17.

The analysis also shows that the cost of a buildings policy dropped by 3% over the quarter to £112.74 (10.1% over 12 months) and the cost  of a contents policy fell 2.3% to £60.28 (8.2% over 12 months).

The average is based on the five cheapest quotes for each ‘customer’ in a nationwide basket of risks and based on prices from direct insurers, brokers and price comparison sites. 

Janet Connor, managing director at AA Insurance, said that the falls are greater than expected but it reflected a long period of benign weather: “Home premiums are most likely to be affected by extremes of weather and the recent winter has on the whole, been notable for its lack of heavy rain, snow, winds and extreme temperatures.”