Motor and home premiums continue to fall in November 2025

Both motor and home premiums continued to fall in November 2025, according to the latest General Insurance Price Index from Pearson Ham Group.

The firm reported that despite the market steadying, the average cost of cover in both lines was down over 13% year-on-year.

Motor policyholders saw their average top five quoted premiums fall by 0.7% in October and a further 0.3% in November.

Speaking on the motor trend, Stephen Kennedy, director at Pearson Ham Group, suggested that price of cover “continues to drift lower, but at a much slower rhythm”.

“We’re now in a phase where broad price cuts are giving way to finer adjustments – insurers appear to be near a sustainable floor in pricing and are refining their positions rather than engaging in aggressive undercutting,” he continued.

“This more measured approach suggests the market is stabilising – from here we expect to see greater divergence in premiums by customer segment and risk profile, as insurers focus on profitable growth and long-term market share instead of short-term volume gains.”

Bottoming out

Home insurance prices, meanwhile, fell by 0.5% in October of this year and by just 0.1% in November – making the quarter on target to see substantially lower falls than the 2% seen in Q3 2025.

Frances Luery, product manager at Pearson Ham Group, explained: “We’re seeing clear signs that the home insurance market is hitting its floor after a prolonged period of intense competition.

“Premiums are now materially lower than they were a year ago and the minimal change in November signals that insurers have largely recalibrated their pricing following the surge of claims inflation we saw in previous years.”