Motor premiums see rate of decline slow

Motor insurance premiums have continued to fall into 2025, according to the latest data from pricing consultancy Pearson Ham Group.

The firm’s general insurance price index, published on 3 April 2025, showed that there was a 3.6% decrease in the average top five premiums in Q1 2025.

However, while the downward trend remains in place, the pace of reduction is easing.

This is because premiums dropped by 2.4% in January, but the decreases tapered off to 0.9% in February and 0.4% in March. 

Stephen Kennedy, director at Pearson Ham Group, said: “On the surface, it’s good news for consumers – premiums are continuing to fall.

”But the devil is in the detail. The rate of decline is clearly losing momentum and we’re seeing stark differences across age groups and regions.

”That suggests market dynamics are shifting and the blanket reductions of the past year may soon give way to a more complex pricing landscape.”

Home premiums

Meanwhile, home insurance premiums continued to fall in the first quarter of 2025, with the average top five prices for combined buildings and contents cover down by 3.3%.

While this drop is broadly in line with motor insurance trends, the decline in home premiums has been more evenly paced.

This is because premiums decreased by 0.9% in January, followed by 1.3% in February and 1.2% in March.

Frances Luery, product manager at Pearson Ham, said: “Premiums are falling but the context is key. While prices are now below where they were a year ago, they’re still nearly 40% higher than in 2023.

”That gap reflects the intense inflationary pressure the home insurance market experienced over the last two years. The data shows some stability is returning, but we’re not yet back to where we started.”