Home insurance premiums in the UK have resumed their upward trajectory with a modest monthly increase of 0.4%, while motor insurance prices have continued their downward trend with costs dropping by 1.9%, according to Pearson Ham Group’s General Insurance Price Index for August.
For the past three months, home insurance prices have remained relatively stable – a decline was observed in July – following a period of rapid increases earlier in the year.
Pearson Ham Group reported that the average home insurance premium now sits at nearly £418, a 26% rise compared to the same time last year. In motor, the change represents a 3% decline from the corresponding figure in 2023.
Broken down by region, here’s how home and motor insurance premiums have adjusted:
|
Region |
August movement (home) |
12-month movement (home) |
August movement (motor) |
12-month movement (motor) |
|---|---|---|---|---|
|
Scotland |
0.9% |
31% |
-2% |
0% |
|
North East |
0.5% |
27% |
-2.1% |
-5% |
|
North West |
0.5% |
27% |
-1.8% |
-4% |
|
East of England |
0.4% |
30% |
-1.8% |
-1% |
|
South East |
0.4% |
29% |
-1.9% |
-3% |
|
Wales |
0.4% |
28% |
-2% |
-5% |
|
West Midlands |
0.4% |
27% |
-2% |
-3% |
|
Yorkshire & the Humber |
0.4% |
27% |
-1.8% |
-5% |
|
East Midlands |
0.4% |
26% |
-1.7% |
-3% |
|
Northern Ireland |
0.3% |
39% |
-1.2% |
0% |
|
London |
0.2% |
31% |
-2.3% |
-4% |
|
South West |
0.2% |
28% |
-1.9% |
-3% |
Commenting on the numbers, Pearson Ham Group director Stephen Kennedy (pictured) cited two conclusions from the August analysis.
“Firstly, the plateauing of home insurance prices over the past few months may represent the end of the steep increases observed in response to rising costs over the past two years and will be interesting to see how this develops in September, particularly if we experience any more extreme weather events,” he said.
“Secondly, the regional disparities observed highlight the continuing volatility in the home insurance market, which could have ongoing implications for both homeowners and insurers.”
Meanwhile product manager Frances Luery added: “These figures indicate a continuing softening of the motor insurance market, bringing prices to a level lower than they were at this time last year – an occurrence not seen for some time.
“While premiums remain high following sharp increases in 2022 and 2023, the recent downward trend offers potential cost savings for drivers across the UK, though the impact varies by region and demographic, showing that the pricing experience for motorists is not uniform.
“Nonetheless, the recent drop in motor insurance premiums provides a welcome reprieve for many drivers, especially against the backdrop of rising living costs.”
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