The latest average premium data from Pearson Ham;
The latest General Insurance Price Index from Pearson Ham Group shows that average top-five premiums for both motor and home insurance decreased in August 2025, extending the downward run seen through the year. Motor pricing eased by a further -0.9% month on month, leaving premiums -16.1% lower than a year ago and -6.9% below January 2025. The median top-five motor premium was £434 in August, compared with £438 in July, indicating a gentle softening rather than a sharp reset.
Home insurance moved faster; average top-five combined buildings and contents premiums fell by -2.0% versus July. Home prices now sit -11.7% below their level a year ago and -9.9% beneath January 2025, with the median top-five home premium at £196 in August, the first time it has dropped below £200 in 18 months. Regional movements underline the same pattern of steady easing in motor and brisker reductions in home.
In motor, the largest month-on-month changes were recorded in the North East, West Midlands and North West, each down 1.3%. In home, the West Midlands led declines with a 2.5% fall in August, followed by Yorkshire & the Humber at 2.4% and the North West at 2.3%.
Stephen Kennedy, Director at Pearson Ham Group, said:
“Motor pricing continues to ease, but the slope is gentle. August’s small decline suggests a market edging towards stability after an intense correction. The next phase will be set by claims severity, parts and repair dynamics, and how firmly insurers choose to compete for new business. We’re seeing signs of more targeted, segment-by-segment moves rather than broad-brush cuts.”
Frances Luery, Product Manager at Pearson Ham Group, commented:
“Home delivered another brisk monthly fall in August, taking meaningful heat out of premiums year-to-date. We expect greater segmentation from here. Outcomes will diverge by property type, region and recent claims experience as carriers calibrate competitiveness to loss-cost reality ahead of winter weather.”
Taken together, August’s results reinforce the view that motor is progressing towards stabilisation, with modest incremental reductions and heightened focus on specific customer cohorts.
Home, by contrast, has undergone a more pronounced reset over two consecutive quarters, and pricing is now likely to become more granular, with sharper differentiation by flood exposure, construction type, sums insured updates and claims history as 2025 enters its final stretch.
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