February fall in motor premiums continues downward trend
New data has revealed a February fall in motor premiums, with insurance prices down by 0.9% during the month and 19.3% over the past 12 months.
This is according to the latest General Insurance Price Index from Pearson Ham Group, which found that the average price in February was £470.
Drivers over 70 benefited from the most significant reductions, with premiums reducing by 2.3% during the month.
Regionally, drivers in London saw their premiums decrease by 1.3% in February (17.9 annually). This compares to reductions of 1.2%, 1.1%, and one per cent recorded in the East of England, Northern Ireland, and East Midlands respectively.
The North East was the region with the lowest average price reductions during February at 0.2%, although premiums in the area have still come down by 18.5% across the year.
Premiums stabilising
However, the fall in February was the lowest amount recorded in the past year, suggesting premiums may be stabilising.
Stephen Kennedy, director at Pearson Ham Group, said: “After a year of steep reductions, February’s smaller decrease is a signal that insurers are recalibrating their pricing strategies. The biggest reductions continue to be seen among older drivers, while regional and vehicle value differences highlight the complexity of pricing trends in today’s market.
“The question now is whether this slowdown marks the bottom of the cycle, or if external pressures – such as claims costs and regulatory factors – will drive further adjustments in the months ahead.”
