The latest General Insurance Pricing Index from Pearson Ham Group has unveiled contrasting trends in home and motor insurance for November 2024. While home insurance premiums experienced a modest uptick, motor insurance costs continued a steady decline.
Home insurance premiums edged up by 0.4% in November, pushing the annual increase to a significant 17%. Pearson Ham noted that over the past six months, pricing in this market has remained relatively stable, with average monthly changes of just 0.16%.
The median top-five price for home insurance reached £227 in November, up slightly from £224 in October. Regionally, Wales recorded the largest monthly increase at 0.8%, while Northern Ireland saw the sharpest year-on-year growth, with premiums surging by 25% since November 2023.
Variations in pricing by property type were also noted. Homes with fewer than two bedrooms saw a 0.7% increase, whereas four-bedroom properties remained relatively unaffected.
|
Home insurance premiums |
||
|---|---|---|
|
Region |
November movement |
12-month movement |
|
Wales |
0.8% |
16% |
|
East Midlands |
0.7% |
15% |
|
East of England |
0.5% |
18% |
|
Northern Ireland |
0.2% |
27% |
Source: Pearson Ham
In contrast, motor insurance premiums fell by 2.2% in November, marking the eighth consecutive month of reductions. Over the last year, motor premiums have dropped nearly 15%, noted the report.
Price changes varied by region, with Scotland seeing the smallest annual decrease at -10.8%, while sharper declines were observed in parts of England and Wales. Vehicle value played a significant role, as premiums for high-value vehicles and those valued under £1,000 fell by -2.8% and -2.4% respectively. Over the past year, owners of vehicles worth less than £1,000 have benefited from a -15.3% reduction in premiums.
Age demographics also influenced trends, with drivers over 70 seeing smaller monthly decreases (-1.7%) compared to younger drivers.
|
Motor insurance premiums |
||
|---|---|---|
|
Region |
November movement |
12-month movement |
|
North West |
-2.7% |
-16.4% |
|
North East |
-2.5% |
-16.7% |
|
Wales |
-2.5% |
-15.4% |
|
Scotland |
-1.5% |
-10.8% |
Source: Pearson Ham
Stephen Kennedy, director at Pearson Ham Group, highlighted the contrasting forces shaping the two insurance markets.
“November’s data highlights the contrasting pressures shaping the home and motor insurance markets. Home insurance premiums have plateaued as providers adjust to inflationary factors and regional dynamics, whereas motor insurance prices continue to decline under competitive market conditions,” Kennedy said.
He noted that while the home insurance market has stabilised, the downward trend in motor insurance – particularly for lower-value vehicles – reflects insurers’ focus on retaining price-sensitive customers.
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