New data reveals motor premiums fell 16% in 2024
New data has revealed that motor premiums fell 16% in a year after four successive quarters of lower prices during 2024.
According to the latest Confused.com Car Insurance Price Index, produced in association with WTW, average comprehensive motor insurance prices are now £843, which is £161 lower than they were 12 months ago.
Analysis found a three per cent fall in prices in the final quarter of 2024, following reductions of five per cent, six per cent and two per cent in the previous three quarters.
Regionally, drivers in Manchester and Merseyside benefitted more than other UK regions with motor insurance prices down by an average of 19%, or £235, to £998.
Meanwhile, 18-year-olds enjoyed an 18% reduction in premiums to £2,605 on average, drivers aged 20 saw premiums fall by 18% and drivers aged 51 saw prices drop by 12% to £699.
Motor insurance in 2025
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said: “Lower levels of inflation and sustained reduced motor claims frequency in 2024 allowed insurers to continue to drop rates for consumers, who have endured dramatic rises since the pandemic.
“While motorists will be hoping for further declines in 2025, how insurers navigate evolving market forces like the whiplash tariff review, the newly-established motor insurance taskforce and wider economic pressures will be critical as they seek to manage costs and support customers.”
Steve Dukes, CEO at Confused.com, added: “New policy prices have been decreasing steadily for 12 months, and we’re now seeing a significant shift in prices compared to last year.
“We’re also seeing significantly different approaches between insurers, which means for customers it’s a great time to be shopping around and for ambitious insurers it’s an opportunity to grow. As the market remains highly competitive on price, insurers are increasingly using data to inform and monitor their own specific growth strategies.”
