Figures from Defaqto’s latest motor insurance price index show that motor insurance premiums rose by 2.1% in Q2. This was on top of the 1.4% uptick in Q1, taking the total increase since the beginning of the year to 3.6%.

On an annualised basis, quoted motor premiums are 0.8% lower than they were a year ago. The 12-month gap has narrowed significantly since the end of 2025 when prices were 11.4% cheaper than at the end of the previous year.

Stephen Kennedy, director at Defaqto, said: “Q2 confirms that the motor insurance market has moved into a harder pricing phase, but this is not a repeat of the extreme inflationary cycle we saw in 2022 and 2023.”

He added: “Insurers are again applying upward pressure where they need to, particularly as they seek to protect margin and respond to underlying cost dynamics.”

During the remainder of the years Kennedy expects to see more targeted pricing, sharper segmentation and a more stable market.