UK motor pricing outlook 'uncertain' as premiums drop 17% in 2024: WTW

By Ryan Hewlett

March 25 - (The Insurer) - UK motor premiums registered their biggest annual percentage decrease in a decade over 2024, with the cost of an average comprehensive motor policy falling by 17% during the last 12 months.

Motorists are now paying 777 pounds ($1,006) on average average for a comprehensive car insurance policy in the UK, a drop of 164 pounds year on year, according to the latest insurance price index from WTW and Confused.com.

This is the biggest annual percentage decrease since 2014 and follows a downward trajectory in prices that began in the first quarter of 2024.

The WTW index, which compiles price data from more than six million customer quotes per quarter, peaked at 995 pounds in the fourth quarter of 2023, following a two-year upward trajectory in prices.

The decrease last year was driven by lower levels of claims frequency, which continued into the first quarter of 2025, combined with reduced average damage costs, said Tim Rourke, UK head of P&C pricing, product, claims and underwriting at WTW.

“Improved stability in average used car prices during the last 12 months is another key contributing factor, having previously been a significant driver of premium increases between 2020 and 2023,” said Rourke.

“The outlook on pricing for the year ahead, however, remains ambiguous given the as yet uncertain impacts of recent legislation coupled with the steady rise in the uptake of electric vehicles and associated higher claims costs, which will continue to put pressure on insurers as they battle to keep pace with new technology and the wider claims environment.”

All regions across the UK recorded price falls over the last 12 months. Drivers in Inner London saw the largest percentage decrease in the cost of comprehensive car insurance, with an annual reduction of 20%. However, the region remains the most expensive in the UK with average premiums now costing 1,208 pounds.

The smallest annual decrease was seen in South West England, where average premiums fell 12% to 532 pounds.

South West England has also been replaced as the cheapest region for car insurance by Central and North Wales, where average premiums now cost 523 pounds. The West Midlands remains the most expensive area outside of the capital, with average premiums now costing 943 pounds.