’The market has now seen 10 consecutive months of falling motor insurance premiums,’ says director
Motor insurance premiums have seen their largest monthly drop since May 2024, new figures by Pearson Ham have revealed.
The data, published today (10 February 2025), showed prices fell by -2.4% in the first month of 2025. This brought the 12-month movement rate to -18.2%.
Meanwhile, the median top five price for motor insurance fell to £464 in January, reflecting the downward trend in premiums.
Stephen Kennedy, director at Pearson Ham, said: “The market has now seen 10 consecutive months of falling motor insurance premiums, with January marking the steepest drop since last May.
“The -18.2% annual decrease is particularly striking, especially given the steady increases we saw throughout much of 2023. “
Biggest reductions
The biggest premium reductions were observed among the youngest and oldest drivers, with motor insurance rates for under-26s and over-70s both declining by -2.9% in January.
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Regionally, drivers in the north west and London saw the largest premium decreases (-2.9%), while Northern Ireland recorded a more modest decline of -1.9%.
Kennedy said: “The sharpest declines among younger and older drivers suggest insurers are recalibrating pricing, potentially in response to claims trends and competitive pressures, and could indicate some back versus front book strategies.
“Meanwhile, regional variations highlight how local market dynamics continue to influence pricing.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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