Findings from the latest Confused.com Car Insurance Price Index in association with WTW show that average comprehensive car insurance premiums fell by 6% in the three months to June 2024 and now stand at £882. This follows the 5% drop registered in the previous quarter. Despite the quarterly falls, premiums still recorded an annual rise of 14% (£106).

Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “After a sustained period of significant rate increases to counter the high levels of claims inflation, it is interesting to see from this data a change in insurers’ behaviour indicating that premium adequacy may now be sufficient to allow insurers to drop rates.

“However, insurers still face a number of ongoing challenges, including the rising cost of materials and labour, second hand cars and advanced vehicle technology, as well as operating in a changing political landscape.”