Quoted car insurance premiums in the UK have declined 10.8% over the past year, but the pace of reductions may be slowing, according to the latest Consumer Intelligence Car Insurance Price Index.
The index reported a marginal monthly increase in quoted premiums during April, though prices fell by 1.3% over the three-month period leading up to April.
Wales recorded the largest year-on-year decrease in quoted premiums at 21.1%. Six other regions — the South East, North East, South West, Eastern, West Midlands, and Yorkshire and The Humber — also posted double-digit falls. London diverged from this trend, with quoted premiums rising 2% over the past three months and dropping only 0.2% over the past year.
Of the demographics, younger drivers saw vastly improved conditions, with 30% of drivers under the age of 25 able to find a quote under £750 in April, more than double the 13% who could do so during the same period last year.
Across all age groups, the most frequently quoted premiums fell between £250 and £499, accounting for 26% of quotes, while 23% were in the £500 to £749 range.
Max Thompson (pictured above), insurance insight manager at Consumer Intelligence, said there was greater stability in the motor market between February and April.
Recent market data from Confused.com supports signs of softening prices. As of March, the average annual car insurance premium across the UK fell to £777, reflecting a £164, or 17%, reduction compared to the same period in 2024. This marks the lowest level for average premiums in nearly two years, reversing the record-high pricing recorded toward the end of 2023.
Since October 2013, when Consumer Intelligence began collecting data, average quoted premiums have risen 101.1%. Over-50s have seen the highest increase in that period, with premiums rising by 127.4%. For drivers aged 25 to 49, the increase was 121.9%, while under-25s experienced the smallest rise at 31.8%.
In the past year, the over-50s recorded the most significant fall in average quoted premiums, down 16%. Drivers aged 25 to 49 saw a 9.7% decrease, while those under 25 recorded a 3.4% reduction. Over the past three months, quoted premiums declined by 0.9% for under-25s, by 1% for those aged 25 to 49, and by 2% for over-50s.
Telematics-based insurance continues to grow in awareness and potential market penetration. Around 81% of UK drivers are now familiar with telematics policies, although active usage remains at 8%. Notably, 35% of drivers are considering telematics options for their next renewal.
The shift towards usage-based insurance could become a more prominent feature of the market if adoption trends continue, driven by the appeal of personalised pricing based on driving behaviour.
The proportion of top-ranked quotes from telematics providers remained stable at 17% between January and April. Among younger drivers, the proportion of top five quotes coming from telematics-based policies increased by 1% to 39% for under-25s and by 1% to 16% for the 25 to 49 age group. The over-50s segment showed no change, with telematics accounting for 9% of top five quotes.
Premium variation by occupation is another factor influencing costs. Insurers’ historical claims data suggest that drivers’ jobs can significantly affect premiums. Certain professions, such as nurses and healthcare assistants, often face higher premiums compared to business analysts or IT consultants.
Regional variations continued, with all regions posting year-on-year decreases in average quoted premiums. Wales led with a 21.1% fall, while London recorded the smallest decrease at 0.2%. London also saw a 2% rise in quoted premiums over the past three months, making it the only region to record an increase during this period.
Other regions, including Scotland, the East Midlands, and the West Midlands, experienced marginal three-month declines of 0.6%, while the North East recorded a 0.8% fall.
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