Motor insurance prices down 15% in the year
Motor insurance premiums continued their downwards trajectory with a fall in premiums of 2.2% in November.
This is according to the latest General Insurance Pricing Index from Pearson Ham Group.
Its data found that motor insurance prices have now fallen for eight months in a row, and 15% in the year to date.
Scotland has seen the smallest decrease this year, with average premiums down by 10.8%.
Meanwhile, high-value vehicles and those valued at under £1,000 saw prices decline by 2.8% and 2.4% respectively last month, with polices for models under £1,000 seeing a 15.3% reduction throughout 2024.
Stephen Kennedy, director at Pearson Ham Group, said:
“While home insurance premiums have flattened, the fall in motor premiums – particularly for lower-value vehicles – reflects insurers’ efforts to attract and retain customers in an increasingly price-sensitive environment. These movements underline the need for insurers to remain agile and responsive as market conditions evolve.”
Motor insurance prices
Supporting these figures, Go.compare has revealed that comprehensive car insurance currently now averages £437, while third party, fire and theft coverage costs just £1 less at £436 annually. However, premiums remain four per cent up on same period last year.
Tom Banks, Go.Compare car insurance spokesperson, said: “It is very welcome news to find that car insurance prices have fallen, and we hope to see this continue as premiums are still four per cent higher than they were this time last year.
“One surprising finding from our latest price index is that the more basic car insurance policies might not be as good value for money as you might think – with third party only (TPO) cover actually costing significantly more on average than a comprehensive policy.”
