Cold Weather to Affect UK Home Insurance Premiums

According to experts of the financial industry, the cost of home as well as motor protection might be increased as insurers are receiving far too many claims and are paying millions of pounds to their customers.

As such, Axa has revealed that it received 50% more claims last week, half of which were associated with snow damage. According to AA, car insurance companies have already seen a 23% rise in the number of claims.

Last winter, which is believed to be disastrous in terms of snow damage, UK insurers paid over £644 million to homeowners and business owners alone. This year is expected to be even worse, claims the Association of British Insurers.

Commenting on the possible changes, Clare Francis of Moneysupermarket said that "the current bad weather will have an impact on the price of insurance, as it means insurers will have to pay out more claims... the longer this weather continues, the more impact it will have on premiums."