Automobile Insurance coverage Costs Stabilise however Inflation Emerges For Youthful Drivers

Quoted automobile insurance coverage premiums fell 9.1% previously 12 months however remained comparatively flat at -0.5% previously three months, in response to Shopper Intelligence’s newest Automobile Insurance coverage Worth Index. Nevertheless, October 2025 marked the primary month since February 2024 to indicate inflation in aggressive costs above 0.5%, suggesting the market could also be responding to realised losses.
The typical Rank 1-5 new enterprise quoted premium from value comparability web sites (PCWs) was £1,210 in October 2025, down from £1,365 in October 2024.

Youthful drivers skilled a 3.6% rise previously three months regardless of a 2.9% annual fall, while premiums for drivers aged 50 and over fell 2.6% within the newest quarter and 11.9% over the 12 months.

Shopper Intelligence’s knowledge reveals the most important improvement available in the market has been the file variety of value minimize banners showing on comparability web sites, pushed by the proliferation of recent merchandise getting into the market providing tiered propositions at aggressive positions.

Drivers in Wales noticed the most important fall previously 12 months at 16.2%, while London and Scotland skilled smaller reductions at 1.7% and 4.0% respectively. Within the newest quarter, London and Scotland returned to inflation at 1.9% and 1.7% respectively.

Quoted premiums

Drivers mostly obtained a quote between £250 and £499 with 29% of quotes falling on this vary and 24% falling between £500 and £749.

Within the newest quarter, drivers in search of the most cost effective Rank 1-5 quotes noticed continued falls for ages 50+ at 2.6%, while aggressive premiums inflated for the second consecutive quarter for under-25s at 3.6%.

Almost 42% of under-25s might supply a quote for lower than £1,000 in October, up from 36% a 12 months in the past. By comparability, 80% of over-50s can supply a quote for lower than £750 in October in contrast with 72% a 12 months earlier.

Lengthy-term view

Common quoted premiums have risen by 102.5% – greater than doubled – since October 2013 when Shopper Intelligence first began accumulating knowledge.

The over-50s have seen the most important improve, with premiums rising by 128.5%, while the under-25s have skilled a way more modest improve of 39.8%. Drivers aged 25-49 have seen premiums climb 120.8%.

Age variations previously 12 months

The over-50s benefited probably the most from value falls with common quoted premiums down 11.9% previously 12 months, adopted by ages 25-49 at 9.1% and under-25s at simply 2.9%.

Quoted premiums have risen 3.6% for the under-25s previously three months however fallen 2.6% for drivers aged 50 and over. Ages 25-49 remained comparatively flat at -0.4%.

Telematics

The proportion of Rank 1-5 quotes delivered by telematics suppliers remained constant at 16% in October 2025, unchanged since July. A small improve was noticed for under-25s, rising 1 proportion level to 38%, while ages 25-49 remained at 14% and over-50s stayed at 9%.

The rise in telematics competitiveness for youthful drivers has been pushed by stronger value hikes from key non-telematics merchandise, resembling these from the Hastings group, which has created area within the prime 5 rankings for telematics suppliers.

Zego, a brand new non-telematics supplier, entered the PCW motor market over the past quarter with aggressive premiums, recurrently registering within the 5 least expensive quotes. Nevertheless, as they don’t provide quotes for drivers beneath 25, their impression on non-telematics competitors for youthful drivers is proscribed, while strengthening competitors for different age teams.

Regional variations

All areas noticed falls in common quoted premiums over the previous 12 months however the decreases ranged from 16.2% in Wales to 1.7% in London and 4.0% in Scotland. One other seven areas noticed double digit falls.

Previously three months, most areas continued to indicate decreases in common premiums. Nevertheless, London and Scotland returned to inflation at 1.9% and 1.7% respectively.

Drivers within the North-West proceed to face the very best common quoted Rank 1-5 premiums at £1,680, forward of London at £1,439. Motorists within the South-West proceed to see the bottom common Rank 1-5 quoted premiums at £839, with three different areas additionally reporting averages under the £1,000 mark: Wales, East-Midlands and Japanese.

1. For every threat, widespread to consecutive months, the variation is calculated from the typical of the highest 5 least expensive premiums returned on every PCW within the earlier month to the typical of the highest 5 within the present month no matter which manufacturers supplied these quotes. The train is repeated on every PCW for every widespread threat. The general market prime 5 month-to-month variation is calculated by averaging throughout all these threat stage prime 5 variations for widespread dangers run in each months. The month-to-month figures are concatenated as much as produce the trended value index from a place to begin of 100% within the base month.