Comprehensive car insurance premiums fell by 13% in the year to the end of November 2025, according to the latest Confused.com Car Insurance Price Index in association with WTW. The research found the average premium was now £726.

Younger drivers saw the biggest cuts to their premiums. Those aged 17 saw a 16% drop across the year, while for those aged 18 the reduction was 25%. Across the under-25 age group, the average fall was 16%.

Tim Rourke (pictured), UK head of P&C pricing, product, claims and underwriting at WTW, said: “Motorists have benefitted from lower insurance premiums driven by a continued decline in personal injury claims through 2025. Most likely due to the whiplash reforms, bodily injury claims have now fallen from 16% of insurers’ spend in 2021 to 9% in 2025.

“While UK motor insurers can expect to break even in 2025, rising claims inflation and higher repair costs linked to increasingly complex vehicle technology may lead to losses in 2026, putting pressure on insurers to reverse the recent downward trend in prices.”

At a regional level, central London is the most expensive place for insurance, with the average premium costing £1,444, down 12% on the previous year. Llandrindod Wells in Wales is the cheapest with an average premium of £476, down 7% on the previous 12 months.