Car insurance premiums climbing again
Average car insurance premiums rose 2.4% in the 12 months to April, according to the latest data from Consumer Intelligence’s Motor Competitive Index.
Meanwhile, prices rose 4.5% in the last quarter, ending six consecutive quarters of falling prices.
Annual price increases were most pronounced for younger and mid-age drivers, with premiums for the under-25 group up 6.5% year-on-year and those for 25-49-year-olds up three per cent.
Meanwhile, premiums for over-50s were down just -0.3% annually.
In the last quarter, 25-49-year-olds saw prices rise 5.4% while premiums rose 4.7% for over-50s.
Laura Vas, senior insight analyst at Consumer Intelligence, said: “Rising premiums and retreating price cut offers are telling the same story. The deflationary period that followed the market’s 2024 peak appears to be over, and insurers and aggregators are adjusting their strategies accordingly.
“The withdrawal of price cut straplines by at least one major aggregator is a particularly clear signal that the market’s trading environment has shifted.”
