Premiums fall for second successive quarter

Comprehensive car insurance premiums fell six per cent, or £59, between April and June this year.

Car insurance premiums have now fallen for two consecutive quarters after a dip of five per cent in the first three months of 2024, with average annual premiums now £882, according to the latest Confused.com Car Insurance Price Index in association with WTW.

Across the year though, average prices rose 14% (£106).

Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said, “After a sustained period of significant rate increases to counter the high levels of claims inflation, it is interesting to see from this data a change in insurers’ behaviour indicating that premium adequacy may now be sufficient to allow insurers to drop rates.

“However, insurers still face a number of ongoing challenges, including the rising cost of materials and labour, second hand cars and advanced vehicle technology, as well as operating in a changing political landscape.”

Steve Dukes, CEO at Confused.com, added, “It seems after a long period of such steep increases in car insurance prices, the industry is starting to stabilise, adjust to increased claims costs and bring prices down. 

“However, prices are still up year on year, creating opportunities for insurers to grow their customer base and for consumers to save by switching. We’re finding insurers using industry insights and data are able to compete more effectively by increasing the speed at which they reflect changes in the market within their pricing.”