Motor premiums fall for second quarter in a row

The average price of motor insurance premiums has fallen for the second consecutive quarter, new figures by the ABI have revealed.

Its latest Motor Insurance Premium Tracker, which was published today (12 November 2024), showed that the average price fell 2% between July and September to £612.

This followed the 2% decrease in premiums recorded by the ABI for Q2 2024.

However, despite the quarterly drop, the average cost of motor insurance in the third quarter of this year was £50 (9%) higher than the same period in 2023.

This was driven by cost pressures, with insurers paying out £2.9bn in motor claims in Q3 2024 – up 14% on £2.5bn paid in the same period last year.

Repair costs, meanwhile, totalled £2bn for the quarter, which was 26% higher than Q3 2023.

Mervyn Skeet, ABI director of general insurance policy, said: “While our latest figures show the second consecutive quarterly drop in average motor insurance premiums, we know that the industry continues to face significant cost pressures and the price of cover remains a strain on household finances.”

Bringing costs down

The ABI has made several moves to help insurers with costs and bring down premiums further.

This includes launching its 10-point roadmap and premium finance principles earlier in 2024.

And in October 2024, it was announced that the trade body would be part of the government’s newly established motor insurance taskforce.

The taskforce aims to identify the factors behind higher premiums and find solutions to keep costs under control.

Skeet said: “We remain determined to do all we can to support motorists.

“As part of this, we’re committed to playing our part in supporting the government’s taskforce and we look forward to bringing our ideas and expertise to the table, contributing to this initiative on behalf of our members.”