Motor and home premiums fall again in August 2025

Motor and home insurance premiums fell again in August 2025, according to the latest General Insurance Price Index from Pearson Ham Group.

Motor premiums dipped by 0.9% month-on-month, with the median top-five quote at £434 compared with £438 in July. This marks a 16.1% fall compared with August 2024 and leaves prices 6.9% below January 2025 levels.

Home premiums saw a sharper correction. Combined buildings and contents pricing dropped by 2% month-on-month, taking the median top-five home premium to £196 – the first time it has fallen below £200 in 18 months. Prices are now 11.7% down year-on-year and 9.9% lower than at the start of 2025.

Regional trends reinforced the national picture. In motor, the steepest month-on-month falls were in the north east, West Midlands and north west – all down 1.3%. In home, the West Midlands led the way with a 2.5% decline, followed by Yorkshire and the Humber at 2.4% and the north west at 2.3%.

‘Brisk monthly fall’

Taken together, August’s data suggested that the motor market is moving towards stabilisation, with smaller incremental reductions and a focus on specific customer groups.

Home, meanwhile, has undergone a sharper reset, with pricing now expected to vary more widely based on flood exposure, construction type, sums insured and claims history as 2025 enters its final quarter.

Speaking about motor prices, Stephen Kennedy, director at Pearson Ham Group, said: “Motor pricing continues to ease, but the slope is gentle. August’s small decline suggests a market edging towards stability after an intense correction.

”The next phase will be set by claims severity, parts and repair dynamics and how firmly insurers choose to compete for new business.

”We’re seeing signs of more targeted, segment-by-segment moves rather than broad-brush cuts.”

Frances Luery, product manager at Pearson Ham Group, added: “Home delivered another brisk monthly fall in August, taking meaningful heat out of premiums year-to-date. We expect greater segmentation from here.

”Outcomes will diverge by property type, region and recent claims experience as carriers calibrate competitiveness to loss-cost reality ahead of winter weather.”