Motor insurance premiums falling at record rates
Motor insurance premiums have fallen six per cent in the last three months and 8.8% in the last year.
According to the Consumer Intelligence Car Insurance Price Index, the most recent quarterly fall is the biggest since it began tracking premiums in 2013.
The most common quote is now between £250 and £499, with 25% in this range, and a further 22% between £500 and £750. Across the sector, 62% of motorists were able to obtain a quote for less than £750 in January.
In terms of age groups, prices for unde-25s have dropped by 8.1% since October last year, but after steady rises throughout 2024 this equates to just a 0.1% fall in the last year.
Looking at the data regionally, drivers in Wales saw premiums fall 18.5% in the last year, and 8.4% in the last quarter, while other regions seeing significant annual decreases include Yorkshire and the Humber (13.2%), West Midlands (12%), and the Easter region (10.4%).
New Ogden rate
Max Thompson, insurance insight manager at Consumer Intelligence, said: “The number of brands advertising price cut offers on price comparison websites has hit a new high. In part it is due to the number of tiered products but it still shows the level of price competition.
“The new Ogden rate of 0.5% which came into effect on 11 January has potentially benefited younger drivers most as it means settlements for claims with long-term damages are reduced. However fewer brands appear at the top of results for younger drivers which can mean the market is more reliant on fewer firms.”
