Motor process fell by 5.5% in Q4 2024 and by 16% in the year to December, according to the latest General Insurance Price Index from Pearson Ham Group. Despite these drops, prices remain more than 21% higher than at the start of 2020.

Stephen Kennedy, director at Pearson Ham Group, commented: “The year 2024 marks a turning point in the motor insurance market, with December delivering a notable -16% year-on-year price reduction. This deflation offers much-needed relief for many policyholders, particularly younger drivers who faced some of the steepest increases in previous years.

“While prices remain over 21% higher than at the start of 2020, we anticipate further declines in 2025, with competitive pressures likely to drive additional reductions over the coming year.”