SME premiums continue to fall, however.

Steve White, Biba

The speed of decline in motor and home insurance premiums is slowing, after year-on-year reductions since 2012, according to the Biba/Acturis Insurance Price Index.

The index reveals that the rate of reduction has slowed over the last two quarters, with less than than 1% reduction in premiums on the same period in 2014.

Co-chief executive of Acturis Theo Duchen believes this slowing is partly because of the impending rise in IPT, and predicts that customers may see premium rates rise in November.

He said: “In the last few years average premiums have reduced for individuals and SMEs in particular. All segments, however, may find their insurance costs rising by the end of 2015, as an increase in IPT from 6% to 9.5% takes effect from November.”

Despite this, the index reveals good news for van drivers and SMEs. The figures show a 13.9% reduction in van insurance premiums for Q2  compared with the same period in 2014.

Likewise, SME premiums continue to decline at a steady trend, decreasing by 9.1% on quarter two of 2014.

Biba chief executive Steve White added: “This shows the competitiveness of the market for small business insurance, and is obviously good news for often hard-pressed SMEs.”

“Van drivers in particular are continuing to benefit from suppressed rates in quarter two.”