Motor insurance prices continue downward trend
Motor insurance prices fell again in August to continue a downward trend seen throughout the year.
According to the latest General Insurance Price Index from Pearson Ham Group, average top-five motor premiums decreased by 0.9% month-on-month last month, leaving prices 16.1% lower than a year earlier and 6.9% below January levels.
It found that the median top-five motor premium was recorded at £434 in August compared with £438 in July. This suggests a gradual softening in prices rather than a steep correction.
Motor insurance prices fell most sharply in the North East, West Midlands and North West, which were all down by 1.3%.
Pearson Ham Group said:
“Motor pricing is edging toward stability after a period of sharp corrections. August’s modest decline suggests the market is approaching a steadier phase, with the next stage likely to be determined by claims severity, parts and repair costs, and the level of competition for new business.”
