Average car insurance premiums fall for ninth straight quarter
Average car insurance premiums have fallen nine per cent (£711) in the last year and are 29% (£284) down on their December 2023 peak.
According to the latest Insurance Price Index from Confused.com, produced in association with WTW, average premiums have now fallen for nine consecutive quarters.
However, the data suggests the downward trajectory is slowing with a 3.2% reduction in January falling between modest increases in both December and February.
Regionally, drivers in Manchester and Merseyside saw the sharpest falls at 14%, while premiums in south Wales came down by an average 11%. However, Northern Ireland saw premiums move in the opposite direction as they increased by 14% from £834 to £947.
In terms of age categories, average premiums for 17-year-old drivers fell by 23% in the last year from £2,258 to £1,741, while those aged 18 benefited from a 14% reduction to £2,082.
Average mileage
Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “The last few months saw modest fluctuations in premiums, but the large-scale reductions seen in 2025 appear to have subsided. Looking forward, ripple effects from the Middle East conflict could put upward pressure on UK inflation, owing to supply chain disruption and increased production and energy costs, driving up the cost of motor insurance premiums.
“However, any rises could be partially offset by a potential reduction in claim frequency if we see a drop in average mileage driven by UK motorists as a result of higher fuel costs.”
