Younger drivers see costs rise 3.7% year-on-year whereas over-50s profit from 6.7% deflation.
Market stabilises as correction section eases
Quoted automobile insurance coverage premiums fell 3.3% within the 12 months to the tip of January 2026. This compares to 9.1% annual deflation recorded three months earlier.
Over the previous three months, pricing was broadly steady at -0.1%, indicating that the sharp section of value correction seen beforehand is not evident.
Throughout the entire market, the typical Rank 1–5 new enterprise quoted premium was £1,194 in January 2026 in comparison with £1,259 in January 2025.
Laura Vas, Senior Perception Analyst at Client Intelligence, says:
“The headline suggests stability, however segmentation throughout the market stays pronounced. The tempo of deflation has slowed considerably, and pricing is now plateauing at an total degree slightly than persevering with the sharp downward adjustment seen earlier within the yr.
“We’ve got not noticed the massive annual price actions from main teams that characterised earlier cycles, and there’s presently no clear proof of a hardening market. Nevertheless, this relative stability in comparison with latest years could sign that the softened circumstances seen by way of 2025 are approaching an inflection level.”
Affordability improves total, however erratically
Drivers mostly acquired a quote between £250 and £499, with 28% of quotes falling on this vary and 24% between £500 and £749.
In January 2026, 65% of drivers had been capable of supply a quote under £750 from PCWs, up from 62% twelve months earlier.
By age group, 82% of over-50s may supply a quote under £750, in comparison with 65% of drivers aged 25 to 49 and 32% of under-25s.
Whereas accessibility has improved at an combination degree, the distribution of inexpensive pricing stays uneven throughout age teams.
Beneath-25s stay structurally separate
Premium actions proceed to diverge by age.
Over the previous 12 months, premiums fell 6.7% for over-50s and three.2% for drivers aged 25 to 49. Beneath-25s had been the one age group to expertise annual inflation, with a 3.7% enhance.
In the newest quarter, under-25 premiums fell 1.9%, whereas drivers aged 25 to 49 noticed a marginal enhance of 0.5% and over-50s had been broadly flat at 0.1%.
Will add:
“Youthful drivers stay on a distinct pricing trajectory to the remainder of the market. Though quarterly actions have eased, they’re nonetheless the one section going through upward annual strain.”
Telematics competitors steady, positioning shifts
Telematics suppliers accounted for 16% of Rank 1–5 quotes in January 2026, unchanged since July 2025.
Telematics competitiveness elevated by one proportion level to fifteen% amongst drivers aged 25 to 49, whereas it decreased by one proportion level amongst over-50s.
The rise amongst drivers aged 25 to 49 mirrored Hastings Direct YouDrive reducing premiums to achieve Rank 1–5 share, whereas non-telematics suppliers reminiscent of Esure and Zego diminished their presence after elevating costs.
Amongst over-50s, YouDrive misplaced share following a footprint discount for over-65s, whereas Direct Line and RAC gained competitiveness after reducing premiums.
Will feedback:
“Total telematics competitors is regular, however small shifts in underwriting footprint and pricing technique proceed to affect which suppliers seem best throughout completely different age teams.”
Regional divergence persists
Premiums decreased yearly in 9 of 11 British areas. The biggest annual reductions had been recorded within the North West (-8.6%) and Wales (-8.3%).
London (+7.3%) and Scotland (+3.9%) had been the one areas to expertise annual inflation.
London now has the very best common Rank 1–5 premium at £1,557, whereas the South West stays the bottom at £828.
Within the newest quarter, London and Scotland continued to document inflation (+3.6% and +3.1% respectively), whereas the North West noticed the most important quarterly lower (-4.0%).
Vas says:
“Regional pricing circumstances stay uneven. Whereas most areas are experiencing annual easing, London and Scotland proceed to maneuver in the other way.”
|
Area |
12-month change |
3-month change |
Avg premium (R1-5) |
|
London |
+7.3% |
+3.6% |
£1,557 |
|
Scotland |
+3.9% |
+3.1% |
£1,278 |
|
Jap |
-3.5% |
+1.4% |
£933 |
|
West Midlands |
-3.8% |
-0.8% |
£1,224 |
|
East Midlands |
-4.1% |
-0.9% |
£993 |
|
Yorkshire & Humber |
-4.4% |
-0.6% |
£1,287 |
|
North East |
-5.2% |
-1.7% |
£1,189 |
|
South West |
-5.3% |
+0.2% |
£828 |
|
South East |
-5.9% |
-0.2% |
£1,090 |
|
Wales |
-8.3% |
+0.2% |
£879 |
|
North West |
-8.6% |
-4.0% |
£1,462 |
Desk sorted by 12-month value index change, descending
Lengthy-term view
Common total quoted premiums have risen 97.1% since October 2013 when Client Intelligence first began gathering knowledge.
Over that interval, premiums elevated 116.9% for drivers aged 25 to 49 and 116.5% for over-50s, in comparison with 38.0% for under-25s.
The Client Intelligence Automotive Insurance coverage Value Index is compiled utilizing actual buyer quotes from value comparability web sites (PCWs).
For every danger, widespread to consecutive months, the variation is calculated from the typical of the 5 least expensive premiums returned on every PCW within the earlier month to the typical of the highest 5 within the present month, no matter which manufacturers supplied these quotes. The train is repeated on every PCW for every widespread danger.
The general market high 5 month-to-month variation is calculated by averaging throughout all these danger degree high 5 variations for widespread dangers run in each months. The month-to-month figures are concatenated as much as produce the trended value index from a place to begin of 100% within the base month.
Pattern measurement: roughly 3,600 dangers per thirty days. Final knowledge from 31 January 2026.
