LONDON, 17 July 2024 — Comprehensive car insurance premiums have fallen by 6% (£59) between April and June 2024, with UK motorists now paying £882 on average, according to the latest Confused.com Car Insurance Price Index in association with WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.
Following a two-year-long upward trajectory in prices, car insurance premiums have now decreased for two consecutive quarters following an initial price fall of 5% (£54) in the first three months of 2024.
However, car insurance premiums still recorded an annual rise of 14% (£106), according to the longest established and most comprehensive car insurance price index in the UK. The index is based on price data compiled from over six million customer quotes per quarter.
| 2023 Q2 | 2024 Q2 | |
|---|---|---|
| Average Premium* | £776 | £882 |
| % Change in Quarter* | +18% | -6% |
| £ Change in Quarter* | +£119 | -£59 |
| % Change Annually* | +40% | +14% |
| £ Change Annually* | £222 | £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.”
“Premium adequacy may now be sufficient to allow insurers to drop rates”
Tim Rourke | UK Head of P&C Pricing, Product, Claims and Underwriting at WTW
All regions across the UK recorded price falls over the last three months. Drivers in the North West saw the largest percentage decrease in the cost of comprehensive car insurance, with a quarterly fall of 8% with average premiums now costing £819. The smallest annual decrease was seen in Northern Ireland, where drivers saw a quarterly cut of 4%, with average premiums now costing £925.
The South West of England continues to be the cheapest region for car insurance, with average premiums seeing a quarterly drop from £606 to £571 (6%). Even though car insurance premiums in Inner London fell by £97 (7%) in the last three months, this still remains the most expensive region with average prices at £1404.
The West Midlands region remains the most expensive area outside of the capital, with average premiums falling by 7% (£75) in the last three months and now costing £1082, followed by Manchester / Merseyside (£1064).
| 2023 Q2 | 2024 Q2 | |
|---|---|---|
| Inner London | £1257 | £1404 |
| Outer London | £1003 | £1147 |
| West Midlands | £940 | £1082 |
| Manchester / Merseyside | £965 | £1064 |
| Leeds / Sheffield | £880 | £999 |
More locally focused data shows motorists in Perth experienced the greatest quarterly fall of 9% taking their average premiums from £644 to £585. West Central London continues to be the most expensive postcode area in the country where drivers now pay an average bill of £1735, while Llandrindod Wells in Wales remains the cheapest town in the UK with prices on average now costing £525.
Drivers aged 20 benefited from the greatest price fall, compared to other age groups, seeing a 9% (£227) quarterly price decrease, however they are still bearing the brunt of some of the most expensive prices with average annual premiums now at £2259. The age group to see their car insurance prices decrease by the smallest margin during the second quarter of 2024 were drivers aged 71 and over, with a drop of just 3% (£15) and an average annual premium of £584.
Steve Dukes, CEO at Confused.com comments, “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."
The index is compiled using anonymous data from all enquiries submitted on Confused.com. The prices used for analysis are based on an average of the best five quotes received.
The Confused.com car insurance price index has been running for more than 10 years. In this time, the price comparison market has grown significantly (80% market share), and the make-up of the UK driving population has changed along with it. We’ve been monitoring trends within the car insurance industry and have updated our method utilising machine learning techniques to one that reflects today’s UK motor market. This has resulted in an adjustment to the car insurance prices reported in our index.
Launched in 2002, Confused.com was the UK's first price comparison site for car insurance and is one of the UK’s biggest and most popular price comparison services, generating over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include small van insurance, motorcycle insurance, car buying, and car finance, as well as a number of tools designed to save drivers money on motoring.
Confused.com is not a supplier, insurance company or broker. It provides an objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators.
WTW’s Insurance Consulting and Technology business has over 1,200 colleagues operating in 35 markets worldwide. It is a leading provider of advice, solutions and software – primarily to the insurance industry. Its consulting services help clients manage risk and capital, improve business performance and create competitive advantage – by focusing on financial and regulatory reporting, enterprise risk and capital management, M&A and corporate restructuring, products, pricing, business management and strategy.
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
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