Motor insurance premiums fall in first quarter
Motor insurance premiums have continued falling at the start of 2025, although the rate of reductions has slowed.
According to Pearson Ham Group’s General Insurance Price Index, average premiums dropped by 3.6% in the first quarter.
This comes after a 2.4% decrease in January, a 0.9% fall in February, and 0.4% reduction in March.
Drivers under 26 saw premiums come down by 17% while those over 70 enjoyed a 13.4% decrease.
Regionally, motorists in the North East benefited from the sharpest drop at 19.5%, while Northern Ireland recorded the smallest decline at 13.4%.
These reductions come after a 16% drop in 2024, with prices down 5.5% in the last quarter of the year.
Stephen Kennedy, director at Pearson Ham Group, said: “On the surface, it’s good news for consumers – premiums are continuing to fall. But the devil is in the detail. The rate of decline is clearly losing momentum, and we’re seeing stark differences across age groups and regions. That suggests market dynamics are shifting, and the blanket reductions of the past year may soon give way to a more complex pricing landscape.”
