Rate drops slow but motor premiums continue to fall

Average motor insurance premiums have fallen by 9% over the past 12 months, lowering the average yearly sum paid by UK motorists by £66 to £711.

This is according to the latest Car Insurance Price Index from Confused.com and WTW, released today (26 March 2026), which also highlighted that nine consecutive quarters of price drops have now seen cover fall by 29% – or £284 – since its peak in December 2023.

However, the data also contained slight indications of an easing of the soft market, with the 9% fall seen in the latest period markedly lower than the 13% to 18% falls seen over the prior five quarters.

Indeed, Steve Dukes, chief executive at Confused.com, said that “average car insurance prices for new policies have been decreasing for some time and recently hit a three-year low”.

However, he explained that “the pace of these decreases has been slowing”, and, in some demographics, even started to increase, creating “opportunities for responsive, competitive insurers to attract new customers”.

Northern Ireland was the only UK region to see an annual rise in price, up a dramatic 14%, or £113, to an average of £947. It now stands as the second most expensive region for cover behind only inner London.

Reductions subsiding

Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW, added: “The last few months saw modest fluctuations in premiums, but the large scale reductions seen in 2025 appear to have subsided.

“Looking forward, ripple effects from the Middle East conflict could put upward pressure on UK inflation, owing to supply chain disruption and increased production and energy costs, driving up the cost of motor insurance premiums.

“However, any rises could be partially offset by a potential reduction in claim frequency if we see a drop in average mileage driven by UK motorists as a result of higher fuel costs.”