Motor premiums fell in January to continue downward trend
Motor premiums fell in January by 2.4%, according to the latest General Insurance Price Index from Pearson Ham Group, with insurance prices down 18.2% in the last 12 months.
It found that the average price fell to £464 in January, with the most significant premium reductions observed among the youngest and oldest drivers. Drivers under the age of 26 and those over 70 both saw premiums decrease by 2.9%.
Regionally, drivers in the North West and London saw the largest premium decreases, while Northern Ireland recorded a more modest decline of 1.9%.
Stephen Kennedy, director at Pearson Ham Group, said: “The market has now seen 10 consecutive months of falling motor insurance premiums, with January marking the steepest drop since last May. The 18.2% annual decrease is particularly striking, especially given the steady increases we saw throughout much of 2023.
“The sharpest declines among younger and older drivers suggest insurers are recalibrating pricing, potentially in response to claims trends and competitive pressures, and could indicate some back versus front book strategies. Meanwhile, regional variations highlight how local market dynamics continue to influence pricing.”
