Motor insurance premiums drop sharply in 2024, while home insurance shows signs of stabilisation.
Consumers purchasing insurance policies for their home or vehicle will likely be pleased this week. According to the latest General Insurance Price Index from Pearson Ham Group, which shows a stabilisation in home insurance pricing and a record reduction in motor insurance premiums in 2024.
Prices fell consistently every month since April, with December marking a significant 16% year-on-year decline compared to the end of 2023.
Young consumers drive away with the best deal
Younger drivers benefitted the most, experiencing reductions of almost 17% year-on-year. Drivers aged between 50 and 60 saw decreases of 16%, while those over 60 recorded an average drop of below 14%. The smallest reductions were noted among drivers over 70, with premiums falling by 13.4%.
However, consumers likely won’t feel the effects, as many are still feeling the pinch from dramatic car insurance increases since the Covid-19 pandemic. Despite the sharp declines, motor insurance prices remain 21.4% higher than at the start of 2020, although this figure has improved from a peak of 46% higher in late 2023.