Car insurance premiums down 17% in a year
Latest figures have shown that average comprehensive car insurance premiums have fallen by 17% in the last year to £777.
According to the latest Confused.com Car Insurance Price Index, published in association with WTW, this marks the greatest reduction in insurance prices since 2014.
Drivers in London enjoyed the largest decreases (20%), although the region remains the most expensive in the UK for insurance with average premiums at £1,208.
The West Midlands is second most expensive region to insure a car at £943.
By contrast, average annual premiums in central and north Wales and the south west have fallen to £523 and £532 respectively.
In terms of age categories, drivers aged 17 and 18 saw prices fall 23% to £2,258 and £2,434 respectively, while premiums for drivers over 50 decreased by 11% to £655.
Low claims frequency
Tim Rourke, UK head of pricing, product, claims and underwriting at WTW, said: “With claims frequency continuing at the lower levels seen last year into the first quarter of 2025, combined with reduced damage average costs, insurers have been able to adjust their prices and pass savings on to customers.
“Improved stability in average used car prices during the last 12 months is another key contributing factor, having previously been a significant driver of premium increases between 2020 and 2023.
“The outlook on pricing for the year ahead, however, remains ambiguous given the as yet uncertain impacts of recent legislation coupled with the steady rise in the uptake of electric vehicles and associated higher claims costs, which will continue to put pressure on insurers as they battle to keep pace with new technology and the wider claims environment.”
Steve Dukes, CEO at Confused.com, said:
“Behind the general trend of falling prices, we see a more complex picture as insurers increasingly compete for specific customer segments, using investments in data and technology to inform their pricing strategies. Consumers continue to shop around, creating opportunities for focused insurers to grow their customer base.”
