Comprehensive motor premiums fell by 9% during the last year, according to data from the latest Confused.com car insurance price index in association with WTW. It found that motorists were now paying an average of £711 for cover. The index showed that premiums were now 29% lower than their peak of £995 in December 2023. However, the data suggested rates could be on the turn.

The index showed that although rates had dropped by 3.2% in January, average prices during the last three months actually saw modest rises in both December (0.8%) and February (0.4%).

The youngest drivers – those aged 17 – saw the biggest fall as average premiums fell by 23% to £1,741. Those aged 18 experienced a 14% fall, taking their average premiums to £2,082.

Tim Rourke, UK head of property and casualty pricing, product, claims and underwriting at WTW, said: “The last few months saw modest fluctuations in premiums, but the large-scale reductions seen in 2025 appear to have subsided.

“Looking forward, ripple effects from the Middle East conflict could put upward pressure on UK inflation, owing to supply chain disruption and increased production and energy costs, driving up the cost of motor insurance premiums. However, any rises could be partially offset by a potential reduction in claim frequency if we see a drop in average mileage driven by UK motorists as a result of higher fuel costs.”

Steve Dukes, CEO at Confused.com, added: “While average car insurance prices for new policies have been decreasing for some time and recently hit a three-year low, the pace of these decreases has been slowing. For some demographics, prices have started to increase over the past three months.”

“As this trend continues, it creates opportunities for responsive, competitive insurers to attract new customers. UK drivers are concerned about the worsening cost of living outlook and so ambitious, agile insurers will look to offer a solution and fuel growth.”