The latest Confused.com Car Insurance Price Index in association with WTW found that comprehensive motor insurance premiums fell by 2% in the three months to the end of September 2024. On an annual basis, premiums are now 7% lower than at the same time last year. This is the first yearly drop since 2021.

Tim Rourke (pictured), UK Head of P&C pricing, product, claims and underwriting at WTW, said: “Insurers have felt able to continue the reducing trend in premiums supported, in particular, by benign claims frequency experience for most of 2024. This reflects a basket of influences, including action on reducing speed limits, the increasing maturity of workers’ hybrid working arrangements, and consumers increasingly choosing slightly higher policy excesses to reduce their insurance costs.

“The rate of premium reduction seen earlier in 2024 has abated somewhat reflecting continuing high inflation rates on some types of claim, including total loss settlements, mixed personal injury claims and injury general damages, and claims arising from recent episodes of extreme weather.”