Motor and home insurance premium falls accelerated in May

Both motor and home insurance premium prices fell in May, with motor premiums declining by 1.7% and home premiums declining by 1.9% across the month.

That was according to Pearson Ham Group’s latest General Insurance Price Index, released this week (4 June 2025), which also showed the rate of decline is growing – in April, motor premiums fell by just 0.8% and home premiums by 0.4%.

The drop means that motor premiums have fallen 17% in the past year, with median prices now standing at £455.

Home premiums have seen a more modest fall, recording a 6% drop over the past year after May’s substantial decline.

Pearson Ham Group said the falls signal “that the softening of the market may be deeper and more sustained than previously anticipated”.

Renewed acceleration 

Stephen Kennedy, director at Pearson Ham Group, said: “While last month’s data hinted at a possible stabilisation in motor pricing, the renewed acceleration in May points to a continued softening of the market.”

He continued: “Insurers appear to be adjusting rapidly to shifting claims dynamics and competitive pressure, which is now manifesting as more pronounced reductions across a broader range of customer segments. The coming months will reveal how much this cycle continues.”

Frances Luery, product manager at Pearson Ham Group, added: “The pace of change in May underlines that the home insurance market is now experiencing significant softening.

“This is the largest single-month fall we’ve recorded in recent months and points to a rapidly evolving pricing environment. Insurers are clearly re-evaluating their strategies and, as pricing becomes more granular, we expect to see even greater segmentation and volatility emerge.”