Motorists see biggest annual fall in car insurance premiums since 2014

Comprehensive car insurance premiums have fallen by 17% during the last 12 months, new figures from Confused.com and WTW have shown.

Published yesterday (24 March 2025), the data showed that UK motorists now pay £777 on average for premiums, down from £941 a year ago.

The drop represents the biggest annual decrease since 2014 and continues a downward trend that began in Q1 2024.

According to WTW, the trend has been largely driven by “easing claims inflation and frequency”.

Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, said: “With claims frequency continuing at the lower levels seen last year into the first quarter of 2025, combined with reduced damage average costs, insurers have been able to adjust their prices and pass savings on to customers.

”Improved stability in average used car prices during the last 12 months is another key contributing factor, having previously been a significant driver of premium increases between 2020 and 2023.”

UK-wide decreases

All regions of the UK saw a decrease in premium prices over the last 12 months.

Inner London saw an annual decrease of 20%, down from £1,501 in March 2024 to £1,208 in February 2025. Despite the fall, it remains the most expensive region in the UK.

The most expensive region outside of Inner London remains the West Midlands, despite seeing an 18% fall in premiums from £1,157 to £943 across the year.

The smallest annual decrease was recorded in south west England, where a still-substantial drop of 12% saw average premium prices down to £532 from £605 the previous year.

Steve Dukes, chief executive at Confused.com, said: “Car insurance prices have dropped for drivers across all age ranges and in the majority of UK areas. But the biggest drops have been felt by younger drivers, who are seeing some very significant savings compared to this time last year.”