Average quoted car insurance premiums rose 2.4% in the 12 months to April 2026, according to the latest data from Consumer Intelligence's Motor Competitive Index. The most recent quarter saw a 4.5% increase — the first quarterly inflation since Q1 2024 — ending six consecutive quarters of deflation and a period of relative market stability.

At the same time, the number of price cut straplines advertised on price comparison websites fell sharply, dropping from 98 in October 2025 to 72 in April 2026. That October figure was the highest recorded since the introduction of GIPP; April's 72 is the lowest since October 2024. Together, the two trends point to a market that has moved decisively away from the discounting dynamics of the deflationary period.

Laura Vas, Senior Insight Analyst at Consumer Intelligence, said: "Rising premiums and retreating price cut offers are telling the same story. The deflationary period that followed the market's 2024 peak appears to be over, and insurers and aggregators are adjusting their strategies accordingly. The withdrawal of price cut straplines by at least one major aggregator is a particularly clear signal that the market's trading environment has shifted."

Price cut straplines at lowest level since October 2024

The overall decline in price cut straplines reflects brands pulling back on discounting offers as the pricing environment shifts. New entrants to the market have partially offset the reduction, but the net fall of 26 straplines over six months is significant. Separately, one aggregator appears to have made a channel-level strategic decision to cease displaying price cut straplines entirely, with zero observed on that channel in both March and April 2026.

Inflation broadens across age groups and regions

Annual price increases were most pronounced for younger and mid-age drivers, with premiums for the under-25 group up 6.5% year-on-year and those for 25-49 year olds up 3.0%. Premiums for over-50s remained broadly flat at -0.3% annually. Over the latest quarter, all age groups saw increases, with the strongest rises among 25-49 year olds (+5.4%) and over-50s (+4.7%).

Regionally, all eleven British regions recorded quarterly inflation. Scotland (+13.8% annually, +8.9% quarterly) and London (+10.0% annually) led the annual increases, while the North East and North West saw annual deflation of 2.7% and 2.4% respectively.

Telematics competition strengthens for younger drivers

Telematics pricing remained broadly stable overall, with 16% of Rank 1-5 quotes delivered by telematics providers in April 2026 — unchanged since July 2025. Among under-25s, however, telematics competitiveness increased, with 40% of Rank 1-5 quotes in this age group delivered by telematics products, up 2 percentage points in the latest quarter. The increase was driven primarily by two challenger telematics providers, both of which lowered premiums to gain Rank 1-5 share.

About the Consumer Intelligence Motor Competitive Index

The Consumer Intelligence Motor Competitive Index tracks the cheapest five average quoted premiums per risk on each price comparison website each month, measuring changes in competitive pricing across a consistent basket of approximately 3,600 risks. The index has been running since October 2013. Data is drawn from PCW market activity and provides an independent measure of pricing trends across the UK car insurance market.