Motor and home insurance premiums fall in October despite inflationary pressures

A recent report shows that October 2024 saw a rare dip in personal insurance premiums, including motor and home insurance. 

The latest General Insurance Pricing Index from specialist pricing agency Pearson Ham Group shows a dip in personal insurance premiums for October 2024, marking a rare concurrent drop in both motor and home insurance prices.  

This decrease comes as insurers adjust to a challenging economic landscape, bringing some relief to consumers amidst prolonged inflation. 

Home insurance: regional and property type variations 

Home insurance premiums saw a modest decline of -0.7% in October, although the median average top-five price remains high at £224, up 19% year-on-year due to market adjustments.  

There were differences from region to region. London and Northern Ireland experienced slight increases of +0.2% and +0.5%, respectively, while the rest of the country saw their premiums drop. Wales saw the most significant drop, with premiums down by -1.8%. 

The trends also differ depending on property type: detached homes saw the most considerable decline at -0.9%, while smaller properties like one-bedroom homes or studios recorded a slight increase of +0.6%. 

Motor insurance: younger drivers benefit most 

Motor insurance prices continued their seven-month descent, with a -1.2% reduction in October, pushing the median premium to £500 and contributing to a -12.2% drop since January. Younger drivers benefited most, with premiums for those under 30 falling by -1.8%, compared to a -0.8% reduction for drivers over 50. 

Regional patterns also emerged, with the northeast seeing the steepest annual drop at -14.1%, while Scotland and Northern Ireland showed smaller declines of -8.6% and -8.4%, respectively. 

Are price fluctuations likely to continue? 

Stephen Kennedy, director at Pearson Ham Group, commented, “October marks the first month this year in which we’ve seen both motor and home insurance prices decline. We expect motor insurance premiums to continue easing throughout the remainder of Q4, but it’s likely home insurance pricing could resurge and see increases again before the year’s end.” 

Image: Canva 

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk