UK car insurance premiums continue to slide with 13% annual fall

Comprehensive car insurance premiums have fallen by 13% (£111) during the last 12 months with UK motorists now paying £726 on average, according to the latest Confused.com Car Insurance Price Index in association with WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.

Car insurance premiums for younger drivers have seen the greatest changes to their average premiums, with premiums for under 25s dropping by 16% on average year-on-year. Drivers aged 17 experienced the greatest price fall compared to other age groups, benefiting from a significant 25% annual price decrease, reducing their average premiums by £636 from £2,568 to £1,932. Drivers aged 18 saw the next biggest reduction in annual prices of 18%, taking their average premiums to £2,262.

While all age groups saw double digit falls, drivers aged 48 saw the most marginal decrease to their car insurance prices with a fall of 10% (£73) and an average annual premium of £653.

Average car insurance premiums have fallen by £269 (27%) since prices peaked at £995 in December 2023, with prices having decreased for eight consecutive quarters, according to the longest established and most comprehensive car insurance price index in the UK. However, the latest  price fall of 1% (£9) during September to November 2025 was the smallest quarterly drop since the current downward trend began in early 2024, indicating a continued deceleration in the pace of price reductions.