Has the downward trend continued?
Comprehensive car insurance premiums fell 6% (£59) between April and June 2024. UK motorists now pay an average of £882, according to the latest Confused.com Car Insurance Price Index in association with WTW.
However, car insurance premiums recorded an annual rise of 14% (£106) based on price data compiled from over six million customer quotes per quarter.
Comprehensive Car Insurance - Price Trends | ||
|---|---|---|
2023 Q2 | 2024 Q2 | |
Average Premium* | £776 | £882 |
% Change in Quarter* | +18% | -6% |
£ Change in Quarter* | +£119 | -£59 |
% Change Annually* | +40% | +14% |
£ Change Annually* | £222 | £106 |
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to the nearest whole number.
“After a sustained period of significant rate increases to counter the high levels of inflation, it is interesting to see from this data a change in insurers’ behaviour indicating that premium adequacy may now be sufficient to allow insurers to drop rates. However, insurers still face a number of ongoing challenges, including the rising cost of materials and labour, second hand cars and advanced vehicle technology, as well as operating in a changing political landscape,” said Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW.
All regions in the UK recorded price falls over the past three months. The North West saw the largest percentage decrease with a quarterly fall of 8%, as average premiums now cost £819. Meanwhile, the smallest annual decrease was in Northern Ireland, as motorists saw a quarterly cut of 4%, with average premiums now costing £925.
The South West of England is the cheapest region for car insurance, as average premiums saw a quarterly drop from £606 to £571 (6%). Meanwhile, Inner London remains the most expensive region with average prices at £1,404.
Most Expensive Regions in the UK | ||
|---|---|---|
2023 Q2 | 2024 Q2 | |
Inner London | £1,257 | £1,404 |
Outer London | £1,003 | £1,147 |
West Midlands | £940 | £1,082 |
Manchester / Merseyside | £965 | £1,064 |
Leeds / Sheffield | £880 | £999 |
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to the nearest whole number.
Locally focused data shows Perth experienced the greatest drop at 9%, as its average premiums fell from £644 to £585. West Central London is still the most expensive postcode area in the country, as drivers now pay an average of £1,735, while Llandrindod Wells is the cheapest town in the UK, with prices averaging £525.
“It seems after a long period of such steep increases in car insurance prices, the industry is starting to stabilise, adjust to increased claims costs and bring prices down,” said Steve Dukes, CEO at Confused.com. “However, prices are still up year on year, creating opportunities for insurers to grow their customer base and for consumers to save by switching.”
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