Car insurance premiums plateau after sharp fall
Car insurance premiums fell 3.3% year-on-year in January, according to new data released by Consumer Intelligence.
However, its figures suggest the sharp fall in prices is slowing with premiums down just 0.1% in the last three months.
It found that 28% of drivers received quotes between £250 and £499, with 24% offered quotes from £500 to £749.
However, there remains significant price discrepancies according to age, with drivers over 50 seeing average premiums fall 6.7% in the last year, drivers aged 25-49 enjoying a 3.2% reduction but those under 25 seeing average premiums increase by 3.7%.
Regionally, the largest annual reductions were recorded in the North West (8.6%) and Wales (8.3%), while London and Scotland saw premiums increase by 7.3% and 3.9% respectively.
Segmentation
Laura Vas, senior insight analyst at Consumer Intelligence, said: “The headline suggests stability, but segmentation within the market remains pronounced. The pace of deflation has slowed significantly, and pricing is now plateauing at an overall level rather than continuing the sharp downward adjustment seen earlier in the year.
“We have not observed the large annual rate movements from major groups that characterised previous cycles, and there is currently no clear evidence of a hardening market. However, this relative stability compared to recent years may signal that the softened conditions seen through 2025 are approaching an inflection point.”
She added:
“Younger drivers remain on a different pricing trajectory to the rest of the market. Although quarterly movements have eased, they are still the only segment facing upward annual pressure.”
