General Insurance Price Index records 16% fall
Motor insurance prices fell by 16% in 2024 according to the latest Pearson Ham Group General Insurance Price Index.
Its found that premiums were down 5.5% in the last quarter and 10% in the second half of the year, with average premiums falling every month since April.
Motor insurance prices fell most significantly in November and December to underline the downward trajectory, although they remain 21.4% higher than at the start of 2020.
Younger drivers benefited from the largest year-on-year reductions, with premiums for those under 30 dropping by almost 17%. Drivers aged between 50 and 60 saw premiums decrease by 16%, while reductions for drivers over 60 averaged below 14%.
Stephen Kennedy, director at Pearson Ham Group, said:
“The year 2024 marks a turning point in the motor insurance market, with December delivering a notable 16% year-on-year price reduction. While prices remain over 21% higher than at the start of 2020, we anticipate further declines in 2025, with competitive pressures likely to drive additional reductions over the coming year.”
