Motor insurance premiums continue downward trajectory
Motor insurance premiums fell again in April, but not as quickly as in previous months.
The latest General Insurance Price Index from Pearson Ham Group found that average premiums fell by 0.8% last month, which is the smallest monthly reduction in the last year.
However, the continued downward trajectory means premiums have come down by 16.9% in the last 12 months to an average annual price of £467.
Motorists aged 31–40 and 51–60 saw the largest reductions, averaging around one per cent in April while premiums for drivers under 26 and over 70 remained largely unchanged.
Falling premiums
Regionally, the North East and North West recorded the most significant annual decreases at 18.5% and 18.7%, respectively, while areas such as Yorkshire & the Humber, the East of England, and the East Midlands saw monthly falls of over one per cent.
Stephen Kennedy, director at Pearson Ham Group, said: “The sharp falls of recent months are slowing, and this may be the early signal of a market beginning to stabilise.
“As always, the direction of travel will be influenced by claims experience, repair cost inflation, and competitive dynamics in the months ahead. Insurers will need to remain agile and closely tuned in to these diverging pricing signals.”
