LONDON, June 19, 2025 — Comprehensive car insurance premiums have fallen by 16% (£144) during the last 12 months, with UK motorists now paying £757 on average[1], according to the latest Confused.com Car Insurance Price Index in association with WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.
This is a significant annual percentage decrease taking prices to their lowest point in two years and continues a downward trajectory that began 18 months ago, according to the longest established and most comprehensive car insurance price index in the UK.
Average car insurance premiums have now fallen by £238 or almost a quarter (24%) since prices peaked at £995 in December 2023. The WTW/Confused.com Index also shows that in the last three months the average car insurance premium was down 3% (£20) from £777.
| 2024 - May | 2025 - May | |
|---|---|---|
| Average Premium* | £901 | £757 |
| % Change Annually* | +22% | -16% |
| £ Change Annually* | +£165 | -£144 |
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said: “Average premiums have continued to retreat from an all-time high in 2023 in the face of rising theft and vehicle repair costs continuing to put pressure on claims inflation. The current trend of market consolidation and fear of losing scale to a handful of mega-insurers may be a contributor as insurers continue to drop rates to remain competitive and maintain critical mass, despite pressure on margins likely to persist through 2025.”
“Average premiums have continued to retreat from an all-time high in 2023 in the face of rising theft and vehicle repair costs continuing to put pressure on claims inflation,”
Tim Rourke | UK Head of P&C Pricing, Product, Claims and Underwriting at WTW
Drivers aged between 17 and 19 experienced the greatest price falls compared to other age groups. Drivers aged 17 benefited from the biggest drop in prices in more than 10 years, with a substantial 27% annual price decrease, reducing their premiums by £775 from £2,826 to £2,051.
Meanwhile, drivers aged 18 and 19 saw annual price falls of 23% and 21%, taking their average premiums to £2,329 and £2,002 respectively. The age group to see the most marginal decrease to their car insurance prices were male drivers aged 21 to 25, with a fall of 12% (£219) and an average annual premium of £1,864.
All regions across the UK recorded annual price falls over the last 12 months. Drivers in West Midlands saw the largest percentage decrease in the cost of comprehensive car insurance, with an annual dip of 18% (£201), reducing their premiums from £1,110 to £909. Despite this price drop, the region remains the most expensive area outside of the capital.
Drivers in Manchester / Merseyside also benefited from a similar percentage drop at just under 18% (£192), with their premiums decreasing from £1,088 to £896 during the same period. The smallest reduction was seen in Northern Ireland, where drivers saw a more modest annual fall of 9% (£87), with average premiums now at £852 compared to £939 in May 2024.
South West England is once again the cheapest region for car insurance, where average premiums now cost £515, with Central and North Wales following close behind at £524.
| 2024 - May | 2025 - May | |
|---|---|---|
| Inner London | £1,418 | £1,185 |
| Outer London | £1,168 | £967 |
| West Midlands | £1,110 | £909 |
| Manchester / Merseyside | £1,088 | £896 |
| Leeds / Sheffield | £1,025 | £854 |
More locally focused data shows motorists in West Central London, the most expensive postcode in the country, benefited from the biggest annual fall in car insurance premiums, where prices dropped considerably by 24%, from £1,856 to £1,410 (£446). Average prices also fell significantly in Oldham, with drivers seeing prices fall by 21% (£250) since May 2024.
Llandrindod Wells in Wales remains the cheapest town in the UK with prices on average now costing £481. It is however no longer the only town to enjoy average premiums less than £500, now also being joined by Dorchester (£496), Exeter (£496) and Torquay (£497).
Steve Dukes, CEO at Confused.com said: “Car insurance prices have been falling for almost 18 months. Insurers are using data to gain a better understanding of customer risk, reducing price to remain competitive in the key target segments most important to them.
“That said, prices are still considerably higher than they were five years ago. In order to tackle the long-term upward trend in pricing, there’s a need for the industry to look at the underlying cost of providing insurance from every angle, harnessing technology and data to increase efficiency while also improving the customer experience.”
The index is compiled using anonymous data from all enquiries submitted on Confused.com. The prices used for analysis are based on an average of the best five quotes received.
The Confused.com car insurance price index has been running for more than 10 years. In this time, the price comparison market has grown significantly (80% market share), and the make-up of the UK driving population has changed along with it. We’ve been monitoring trends within the car insurance industry and have updated our method utilising machine learning techniques to one that reflects today’s UK motor market. This has resulted in an adjustment to the car insurance prices reported in our index.
Launched in 2002, Confused.com was the UK's first price comparison site for car insurance and is one of the UK’s biggest and most popular price comparison services, generating over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include small van insurance, motorcycle insurance, car buying, and car finance, as well as a number of tools designed to save drivers money on motoring.
Confused.com is not a supplier, insurance company or broker. It provides an objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators.
WTW’s Insurance Consulting and Technology business has over 1,200 colleagues operating in 35 markets worldwide. It is a leading provider of advice, solutions and software – primarily to the insurance industry. Its consulting services help clients manage risk and capital, improve business performance and create competitive advantage – by focusing on financial and regulatory reporting, enterprise risk and capital management, M&A and corporate restructuring, products, pricing, business management and strategy.
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
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