Data from Defaqto’s latest general insurance price index shows that average motor premiums in Q1 2026 rose by 1.4% during the quarter. They remain 6.8% lower than a year ago and more than 23% lower than two years ago. On a longer-term horizon, Defaqto said premiums were up by 9.1% since the beginning of 2020.

Defaqto said that while its latest index had recorded a 1.4% increase in average motor premiums, there was significant disparity in the pricing strategies employed by providers with some recording modest reductions during Q1 and others implementing price increases on more than 5%.

Stephen Kennedy, director at Defaqto, said: “After a prolonged period of price reductions, Q1 marks a clear shift in direction for motor insurance. While the increases we’re seeing are modest, they are significant as they signal the beginning of a market correction.

“What’s particularly notable is the divergence beneath the surface. While average prices have risen, a number of major insurers are still reducing premiums, reflecting a market that is increasingly segmented. Insurers are now moving away from broad-based price competition and towards more targeted pricing strategies aligned to risk and profitability.”