Insurance prices dropping??......any reason why??

Stubod

After 40+ years of car insurance going up every year (since obtaining full NCB), this year both our car insurances have gone down, (not even changed insurance company). 

Just wonderijng why this would be??

singhini

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

WellKnownSid

singhini said:

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

I see what you did there! 😉

singhini

WellKnownSid said:

singhini said:

Things like competition between insurance companies, fewer accidents / claims nationally, adjustments to policies often have an impact. 

I see what you did there! 😉

You my friend are one sharp cookie, i hadn't noticed what i did.   👍 

SiliconChip

"Car insurance quotes have dropped 16% year-on-year and nearly 23% since January, according to pricing consultancy Pearson Ham."

https://www.moneysavingexpert.com/insurance/car-insurance/how-to-get-cheap-car-insurance/

Mine went up  

Stubod

..funny, as mine has increased year on year up until this year???

XzavierWalnut

I have just renewed mine and it went down with my current insurer. I have never known this in over 30 years of driving.

MyRealNameToo

Stubod said:

After 40+ years of car insurance going up every year (since obtaining full NCB), this year both our car insurances have gone down, (not even changed insurance company). 

Just wonderijng why this would be??

Insurance market is generally considered to be cyclical so goes through periods of high and low prices, I'm highly surprised you've seen price increases for 40+ years as in my 25 years of buying insurance I've known prices go in both directions. Inflation should mean prices go up every year but the reality is more complex

The main reason, according to some others, thats being credited at the moment is that the used car prices have stabilised so insurers no longer need to add a larger risk margin that the cost of claims going up because car prices go up. 

The ABI has posted some of its own comments https://www.abi.org.uk/news/news-articles/2025/7/motor-premiums-fall---but-repair-and-theft-costs-keep-revving-up-claims/ though its more doom and gloom than explaining why the recent falls.