Insurance premiums for both motor and home insurance continued to fall in Q4 2025, albeit at a much slower pace than earlier in the year, according to Pearson Ham Group’s latest General Insurance Price Index.
The average motor insurance premium declined by -1.4% over Q4, a marked deceleration compared to the -4% and -3% quarterly drops recorded in Q2 and Q3 of 2025. Home insurance premiums edged down only -0.8% in Q4, after falling nearly -3.8% in Q2 and -4.9% in Q3.
These latest quarterly decreases extend a trend of competitive premium-cutting that began at the start of 2024 but the data also points to an increasingly stabilised market in that the rate of decline in premiums has slowed to a crawl, suggesting pricing may be nearing its floor as insurers pull back.
Motor insurance
Motor insurance premiums have now fallen for eight consecutive quarters, but Q4’s -1.4% drop was the smallest since early in this cycle. Month-on-month reductions in October, November, and December 2025 were on the order of only around half a percent or less, a gentler rhythm than the declines seen through the summer.
Over the second half of 2025, the average of the top five motor quotes fell by -4.3%, roughly half the rate of decrease observed in the first half. On a year-on-year basis, motor premiums in December