Motor insurance pricing nudged down by 0.1% in the three months to January 2026, according to data from Consumer Intelligence. It said this meant annual premiums had fallen by 3.3% on an annual basis, down from the 9.1% annual deflation recorded three months earlier.

London and Scotland bucked this trend, returning rises of 3.6% and 3.1% respectively in the three months to January 2026. On an annualised basis, premiums were up by 7.3% and 3.9% respectively.

Laura Vas, senior insight analyst at Consumer Intelligence, said: “The headline suggests stability, but segmentation within the market remains pronounced. The pace of deflation has slowed significantly and pricing is now plateauing at an overall level rather than continuing the sharp downward adjustment seen earlier in the year.

“We have not observed the large annual rate movements from major groups that characterised previous cycles and there is currently no clear evidence of a hardening market. However, this relative stability compared to recent years may signal that the softened conditions seen through 2025 are approaching an inflection point.”