Annual increases in quoted car insurance premiums slow to 9.8%

• The over-50s and drivers in Wales are benefiting the most while Londoners continue to suffer bigger increases
• In August, motorists most commonly received a quote between £500 and £749, Consumer Intelligence data shows

Price rises for car insurance are continuing to slow, but motorists still face an annual rise of 9.8% in average quoted premiums, according to the latest Consumer Intelligence Car Insurance Price Index¹.

However, most of the increase occurred between August last year and December, with average quoted premiums remaining unchanged over the past three months.

The over-50s and drivers in Wales are benefiting the most from the slowdown, with average quoted premiums rising by only 2.6% for the over-50s and just 0.8% in Wales. In contrast, Londoners continue to face challenges, with average quoted premiums up 15.6% over the year to August.

Data shows that in August this year, the most common quotes for drivers ranged between £500 and £749, accounting for 22% of the five cheapest (Rank 1-5) quotes on price comparison sites. When considering the cheapest premium available to each consumer, around 68% of initial quotes were for less than £1,000. However, only 30% of drivers under 25 were able to secure quotes below £1,000, compared to 66% of those aged 25 to 49 and 89% of those over 50.

“While many insurers reported an easing of claims inflation as part of their half year results, claims costs remain a weight on profitability. More insurers are fighting for the perceived safer risks, with this competition driving down prices for the over 50s,” says Max Thompson, Insurance Insight Manager at Consumer Intelligence.

“This attitude to risk carries through to regional trends, too, with London seeing increases in quoted premiums of 4.4% in the last three months, compared to the next highest in the North-East with a 1.8% increase,” adds Thompson.

Long-term view

Average overall quoted premiums have risen by 122.8%—more than doubling—since October 2013 when Consumer Intelligence first began collecting data.

The over-50s experienced the largest increase, with premiums rising by 155.1%, while under-25s saw the smallest increase at 42.6%. Drivers aged 25 to 49 saw average premiums increase by 144.5%.

Age differences in the past year

In the last 12 months, the over-50s experienced the lowest increase in quoted premiums at 2.6%, and the most significant decrease over the past three months, at 3.8%.

Meanwhile, under-25s saw the largest annual increase at 19.0%, with a 4.5% rise in the last three months. Drivers aged 25 to 49 saw a 10.7% increase since August 2023, with a 0.8% rise in the past three months.

Telematics

The proportion of rank one to five quotes from telematics providers dropped to 13%—the lowest level since June 2016—from 16% in May.

Younger drivers were most affected, with telematics providers accounting for 36% of the top five quotes for under-25s, down from 40% in May. The proportion for drivers aged 25 to 49 slipped from 13% to 12%, while it remained unchanged for the over-50s at 5%.

Regional differences

All regions saw increases in average quoted premiums over the past 12 months, ranging from the highest increase of 15.6% in London to the lowest increase of 0.8% in Wales.

Over the past three months, there were also notable regional differences, with London seeing a 4.4% rise in premiums, while Wales experienced a 3.3% drop. Six regions recorded decreases in average premiums, while five saw increases.

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