Always good to have the latest Defaqto data on average Motor premiums;
Competitive quoted motor insurance premiums ended Q3 2026 higher than a year earlier for the first time since 2023, according to the latest Defaqto Market Pricing Motor Insurance Price Index.
At the end of September, prices were +2.7% above their September 2025 level. The positive annual movement marks a turning point following the sustained reductions recorded during 2024 and 2025.
However, the return to year-on-year growth comes as quarterly increases moderate. Competitive quoted premiums rose by +0.5% in Q3, down from +2.1% in Q2, suggesting that pricing is stabilising after the increases earlier this year.
Stephen Kennedy, Director at Defaqto, said:
“This is the first quarter since 2023 that our motor index has ended with competitive quoted premiums above their level a year earlier. It marks an important change in the annual picture following two years of sustained price reductions.
“That said, the pace of recent movement provides essential context. Prices rose by just 0.5% in Q3 and edged down in September. The annual comparison has turned positive, but the latest quarterly figures suggest a market finding a more stable footing.
“Insurers continue to face inflationary pressures, while their underwriting performance and appetite for growth differ. Those differences are reflected in the spread of provider movements, with competition continuing to shape pricing decisions.”
The average of the top five quoted premiums increased by +0.4% in July and +0.2% in August, before falling by -0.1% in September. Q3 was the third consecutive quarter of price growth, taking the increase over the six months to the end of September to +2.6%.
The longer-term picture still reflects the scale of previous reductions. Competitive quoted prices remain -12.8% below their level two years ago, despite the return to annual growth. They are now +11.9% above the level recorded at the start of 2020.
Significant differences beneath the annual increase
The positive market-wide annual movement conceals considerable variation between providers and customer groups.
Across the providers analysed, Q3 price movements ranged from a reduction of -3.5% to an increase of +9.6%.
Older drivers experienced the largest increases over the past 12 months. Competitive quoted prices for younger drivers in the under-26 and 26–30 age bands, however, remained below last year’s levels.
Movements across annual mileage bands were more consistent, although drivers covering fewer miles saw larger increases.
Regional differences were particularly pronounced. Year-on-year movements ranged from a -1% reduction in London to a +16.3% increase in Northern Ireland.
Francis Luery, Product Manager at Defaqto, commented:
“The return to annual price growth is a significant market development, but motorists will experience it differently. Some customer groups are still seeing competitive prices below last year’s levels, while others have faced appreciably larger increases.
“The regional figures illustrate that spread clearly, as do the differences by driver age. Insurers and brokers need to understand these movements within the customer groups they serve to assess how their competitive position is changing.
“For consumers, shopping around remains worthwhile. Comparing the cover provided alongside the premium can help motorists assess value.”
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