Automotive Insurance coverage Costs Stabilise however Inflation Emerges For Youthful Drivers

Quoted automobile insurance coverage premiums fell 9.1% prior to now 12 months however remained comparatively flat at -0.5% prior to now three months, in response to Client Intelligence’s newest Automotive Insurance coverage Worth Index. Nevertheless, October 2025 marked the primary month since February 2024 to indicate inflation in aggressive costs above 0.5%, suggesting the market could also be responding to realised losses.
The common Rank 1-5 new enterprise quoted premium from worth comparability web sites (PCWs) was £1,210 in October 2025, down from £1,365 in October 2024.

Youthful drivers skilled a 3.6% rise prior to now three months regardless of a 2.9% annual fall, while premiums for drivers aged 50 and over fell 2.6% within the newest quarter and 11.9% over the 12 months.

Client Intelligence’s knowledge reveals the most important improvement out there has been the document variety of worth lower banners showing on comparability web sites, pushed by the proliferation of latest merchandise coming into the market providing tiered propositions at aggressive positions.

Drivers in Wales noticed the most important fall prior to now 12 months at 16.2%, while London and Scotland skilled smaller reductions at 1.7% and 4.0% respectively. Within the newest quarter, London and Scotland returned to inflation at 1.9% and 1.7% respectively.

Quoted premiums

Drivers mostly acquired a quote between £250 and £499 with 29% of quotes falling on this vary and 24% falling between £500 and £749.

Within the newest quarter, drivers in search of the most cost effective Rank 1-5 quotes noticed continued falls for ages 50+ at 2.6%, while aggressive premiums inflated for the second consecutive quarter for under-25s at 3.6%.

Practically 42% of under-25s may supply a quote for lower than £1,000 in October, up from 36% a 12 months in the past. By comparability, 80% of over-50s can supply a quote for lower than £750 in October in contrast with 72% a 12 months earlier.

Lengthy-term view

Common quoted premiums have risen by 102.5% – greater than doubled – since October 2013 when Client Intelligence first began accumulating knowledge.

The over-50s have seen the biggest improve, with premiums rising by 128.5%, while the under-25s have skilled a way more modest improve of 39.8%. Drivers aged 25-49 have seen premiums climb 120.8%.

Age variations prior to now 12 months

The over-50s benefited probably the most from worth falls with common quoted premiums down 11.9% prior to now 12 months, adopted by ages 25-49 at 9.1% and under-25s at simply 2.9%.

Quoted premiums have risen 3.6% for the under-25s prior to now three months however fallen 2.6% for drivers aged 50 and over. Ages 25-49 remained comparatively flat at -0.4%.

Telematics

The proportion of Rank 1-5 quotes delivered by telematics suppliers remained constant at 16% in October 2025, unchanged since July. A small improve was noticed for under-25s, rising 1 share level to 38%, while ages 25-49 remained at 14% and over-50s stayed at 9%.

The rise in telematics competitiveness for youthful drivers has been pushed by stronger worth hikes from key non-telematics merchandise, corresponding to these from the Hastings group, which has created area within the high 5 rankings for telematics suppliers.

Zego, a brand new non-telematics supplier, entered the PCW motor market over the last quarter with aggressive premiums, repeatedly registering within the 5 most cost-effective quotes. Nevertheless, as they don’t provide quotes for drivers below 25, their influence on non-telematics competitors for youthful drivers is restricted, while strengthening competitors for different age teams.

Regional variations

All areas noticed falls in common quoted premiums over the previous 12 months however the decreases ranged from 16.2% in Wales to 1.7% in London and 4.0% in Scotland. One other seven areas noticed double digit falls.

Prior to now three months, most areas continued to indicate decreases in common premiums. Nevertheless, London and Scotland returned to inflation at 1.9% and 1.7% respectively.

Drivers within the North-West proceed to face the very best common quoted Rank 1-5 premiums at £1,680, forward of London at £1,439. Motorists within the South-West proceed to see the bottom common Rank 1-5 quoted premiums at £839, with three different areas additionally reporting averages under the £1,000 mark: Wales, East-Midlands and Jap.

1. For every threat, frequent to consecutive months, the variation is calculated from the common of the highest 5 most cost-effective premiums returned on every PCW within the earlier month to the common of the highest 5 within the present month no matter which manufacturers supplied these quotes. The train is repeated on every PCW for every frequent threat. The general market high 5 month-to-month variation is calculated by averaging throughout all these threat stage high 5 variations for frequent dangers run in each months. The month-to-month figures are concatenated as much as produce the trended worth index from a place to begin of 100% within the base month.