The latest Confused.com Car Insurance Price Index in association with WTW has recorded a 16% fall in motor insurance premiums during the past year. The data identified this as the biggest yearly fall since 2014 and it followed a prolonged rise in premiums from 2021 to 2023.

Tim Rourke (pictured), UK Head of P&C pricing, product, claims and underwriting at WTW, said: “Lower levels of inflation and sustained reduced motor claims frequency in 2024 allowed insurers to continue to drop rates for consumers, who have endured dramatic rises since the pandemic.

“While motorists will be hoping for further declines in 2025, how insurers navigate evolving market forces like the whiplash tariff review, the newly-established motor insurance taskforce and wider economic pressures will be critical as they seek to manage costs and support customers.”