Motor insurance premiums tipped for 14% fall
Motor insurance premiums fell by 4.4% in the third quarter – and prices are continue to fall through the rest of 2024.
This is according to the latest General Insurance Price Index published by pricing consultancy Pearson Ham Group.
This means motor insurance prices have fallen for two quarter in a row, decreasing by 9.6% in the last six months.
Its data suggests prices are now 8.5% lower than they were in September 2023, but remain 28.4% higher than they were pre-pandemic in 2020. However, further decreases in insurance premiums are expected in the fourth quarter, with a fall of up to 14% anticipated over the course of 2024.
Pearson Ham Group director Stephen Kennedy said: “Quarter three marks the first instance of year-on-year price deflation in the motor insurance market for a considerable period of time. Yet, despite recent drops, prices are still nearly 30% above where they were at the start of 2020.
“We anticipate this trend will persist into quarter four, with motor insurance pricing expected to decrease further, resulting in a potential 11-14% drop over the course of the full year. This will offer many vehicle owners some relief amid the broader rise in living costs.”
