Motor premiums fall 17% in past year

According to the latest Confused.com Car Insurance Price Index in association with WTW, comprehensive car insurance premiums have fallen 17% in the past year. This is the biggest annual fall recorded by the index since 2014. Drivers in all UK regions saw prices fall during the past 12 months. Those in Inner London saw the largest percentage decrease in the cost of comprehensive car insurance, with an annual decrease of 20%.

Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “With claims frequency continuing at the lower levels seen last year into the first quarter of 2025, combined with reduced damage average costs, insurers have been able to adjust their prices and pass savings on to customers. Improved stability in average used car prices during the last 12 months is another key contributing factor, having previously been a significant driver of premium increases between 2020 and 2023.

“The outlook on pricing for the year ahead, however, remains ambiguous given the as yet uncertain impacts of recent legislation coupled with the steady rise in the uptake of electric vehicles and associated higher claims costs, which will continue to put pressure on insurers as they battle to keep pace with new technology and the wider claims environment.”


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