Pearson Ham Group’s general insurance price index for Q3 has found that motor premiums fell by 4.4% during the quarter and were down by 9.6% over the past six months. It found that prices in September 2024 were 8.5% lower than those recorded 12 months previously.

Stephen Kennedy, director at Pearson Ham Group, said: “Q3 marks the first instance of year-on-year price deflation in the motor insurance market for a considerable period of time. Yet, despite recent drops, prices are still nearly 30% above where they were at the start of 2020.

“We anticipate this trend will persist into Q4, with motor insurance pricing expected to decrease further, resulting in a potential 11-14% drop over the course of the full year. This will offer many vehicle owners some relief amid the broader rise in living costs.”