Motor and Home Insurance Premiums Decline Slows in November 2025

Insurance premiums for both motor and home insurance continued their downward trajectory in November 2025, according to the latest data from Pearson Ham Group’s General Insurance Price Index.

However, the pace of decline has slowed considerably compared to earlier in the year, pointing to an increasingly stabilised market. Competition remains intense across the industry, but recent movements suggest that pricing may be nearing a floor as insurers become more selective in their pricing strategies. Both motor and home premiums are now over -13% lower than their levels a year ago, underscoring the cumulative impact of five consecutive quarters of falling prices.

The average of the top-5 quoted motor insurance premiums edged down again in November, extending the sustained slide that began in April 2024.

Premiums fell by approximately -0.7% in October and -0.3% in November, a gentler decline than the roughly -1% monthly reductions seen throughout Q3. This brings the total reduction in motor premiums to about -1.0% over the first two months of Q4, a significantly slower pace than the -2.9% fall recorded in Q3 2025.

While insurers remain competitive on price, the easing rate of decrease indicates a more controlled phase of competition in the motor market.

“Motor insurance pricing continues to drift lower, but at a much slower rhythm. We’re now in a phase where broad price cuts are giving way to finer adjustments – insurers appear to be near a sustainable floor in pricing and are refining their positions rather than engaging in aggressive undercutting.

“This more measured approach suggests the market is stabilising; from here we expect to see greater divergence in premiums by customer segment and risk profile, as insurers focus on profitable growth and long-term market share instead of short-term volume gains.”

Combined buildings and contents premiums also remained under downward pressure in November, but the rate of decrease virtually flattened compared to prior months.

Average home insurance premiums dipped by around -0.5% in October and were nearly flat at -0.1% in November, marking a dramatic deceleration from the roughly -2% monthly drops seen during Q3.

This continued (albeit very slight) decline in Q4 indicates that the home insurance market is similarly approaching a point of equilibrium. Premiums are now significantly lower than last year’s levels for home insurance, following five straight quarters of competitive pricing reductions.

“We’re seeing clear signs that the home insurance market is hitting its floor after a prolonged period of intense competition. Premiums are now materially lower than they were a year ago, and the minimal change in November signals that insurers have largely recalibrated their pricing following the surge of claims inflation we saw in previous years.

“The key question now is how long this stability can hold. With winter upon us, any uptick in claims could start to put upward pressure on rates. For the moment, however, consumers are benefiting from the most competitive home insurance prices we’ve seen in recent times.”

Pearson Ham’s analysis suggests that both home and motor pricing are now showing signs of stabilisation, with overall competition remaining strong but becoming increasingly nuanced.

After more than a year of steady declines, which have left premiums over -13% cheaper year-on-year, the broad-based downward pressure appears to be easing.

In the coming months, pricing strategies are expected to become more differentiated, as insurers balance the need for competitive pricing with profitability.

The firm also anticipates greater variability across customer segments and regions, as insurers shift from across-the-board price cuts to targeted adjustments based on risk profile, customer loyalty, and distribution channel. This emerging segmentation means that while the headline declines have slowed, individual policyholders may see more varied price movements depending on their circumstances, as the market moves into a more sustainable equilibrium.