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.
Motor Insurance
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.
Stephen Kennedy, Director at Pearson Ham Group, commented:
“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.”
Home Insurance
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.
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