Home premiums rise while motor policies continue downward trajectory 

The latest General Insurance Pricing Index from Pearson Ham Group has revealed that home insurance premiums rose by 0.4% in November while motor premiums dropped by 2.2%.

Despite the modest decline last month, home premiums remain 17% up year-on-year, with the median top-five price for home insurance now standing at £227.

Regionally, Wales saw premiums rise 0.8% in November, while Northern Ireland has seen the greatest annual increase, up 25% on 2023 figures.

Meanwhile, November’s dip in motor premiums meant policy prices have now decreased eight months in a row with year-on-year decreases recorded at 15%. 

The smallest annual decrease was recorded in Scotland at 10.8%.

Looking at the data on a granular level, high-value vehicles and those valued under £1,000 saw the largest monthly decreases at 2.8% and 2.4% respectively, while over the past 12 months premiums for vehicles valued under £1,000 have dropped significantly by 15.3%.

Stephen Kennedy, Director at Pearson Ham Group, said, “November’s data highlights the contrasting pressures shaping the home and motor insurance markets. Home insurance premiums have plateaued as providers adjust to inflationary factors and regional dynamics, whereas motor insurance prices continue to decline under competitive market conditions.

“While home insurance premiums have flattened, the fall in motor premiums – particularly for lower-value vehicles – reflects insurers’ efforts to attract and retain customers in an increasingly price-sensitive environment. These movements underline the need for insurers to remain agile and responsive as market conditions evolve.”