Motor premiums see first annual rise since 2023

Quoted motor insurance premiums have climbed by 2.7% over the year to September 2026, marking the first time since 2023 that the sector has closed a quarter with a yearly rise in policy prices.

This is according to latest Motor Insurance Price Index from Defaqto, released yesterday (8 October 2026), which also highlighted that despite the year-on-year growth, rate changes remain moderate.

Indeed, across Q3 2026, average quoted premiums climbed by just 0.5% – and in fact fell slightly during September – following a more meaningful 2.1% growth in the second quarter of this year.

Across a longer-term view, rates remain markedly down on historic highs, with premium prices still sitting approximately 12.8% below the same period two years ago and 11.9% down on the start of 2020.

Significant development

Stephen Kennedy, director at Defaqto, said: “This is the first quarter since 2023 that our motor index has ended with competitive quoted premiums above their level a year earlier. It marks an important change in the annual picture following two years of sustained price reductions.

“Insurers continue to face inflationary pressures, while their underwriting performance and appetite for growth differ. Those differences are reflected in the spread of provider movements, with competition continuing to shape pricing decisions.”

Frances Luery, product manager at Defaqto, added: “The return to annual price growth is a significant market development, but motorists will experience it differently. Some customer groups are still seeing competitive prices below last year’s levels, while others have faced appreciably larger increases.

“The regional figures illustrate that spread clearly, as do the differences by driver age. Insurers and brokers need to understand these movements within the customer groups they serve to assess how their competitive position is changing.”