Data from the latest Confused.com Car Insurance Price Index in association with WTW has shown that comprehensive car insurance premiums are down 16% on last year and now stand at an average of £757. This is the lowest average premiums have been for the past 18 months after reaching a peak of £995 in December 2023.

Younger drivers saw the biggest drops. Those aged 17 saw premiums fall by 27% from £2,826 to £2,051. Those aged 18 and 19 also saw premiums drop by more than 20%.

Tim Rourke (pictured), UK Head of P&C pricing, product, claims and Underwriting at WTW, said: “Average premiums have continued to retreat from an all-time high in 2023 in the face of rising theft and vehicle repair costs continuing to put pressure on claims inflation in 2025.

“The current trend of market consolidation and fear of losing scale to a handful of mega-insurers will be a key driver as insurers continue to drop rates in order to remain competitive and maintain critical mass, despite pressure on margins likely to persist throughout 2025.”


Younger drivers saw the biggest drops. Those aged 17 saw premiums fall by 27% from £2,826 to £2,051. Those aged 18 and 19 also saw premiums drop by more than 20%.

Tim Rourke, UK Head of P&C pricing, product, claims and Underwriting at WTW, said: “Average premiums have continued to retreat from an all-time high in 2023 in the face of rising theft and vehicle repair costs continuing to put pressure on claims inflation in 2025.

“The current trend of market consolidation and fear of losing scale to a handful of mega-insurers will be a key driver as insurers continue to drop rates in order to remain competitive and maintain critical mass, despite pressure on margins likely to persist throughout 2025.”