According to the data, average prices fell by 0.8% in April, marking the smallest monthly drop recorded over the past 12 months. While this still contributes to an annual decline of -16.9%, it suggests that the most aggressive phase of price correction may be behind us. The median top-five quoted premium now stands at £467, continuing the downward trend that has characterised much of the past year.
Price falls uneven across age groups and regions
The downward movement is not uniform. Motorists aged 31-40 and 51-60 benefited from the steepest premium reductions in April, at around -1%. In contrast, drivers under 26 and over 70 saw little to no change - a notable divergence that suggests insurers are beginning to refine their risk targeting more precisely by demographic segment. Regionally, the North East and North West of England recorded the sharpest year-on-year reductions, at -18.5% and -18.7% respectively.
Vehicle value driving premium trends
Premiums are also diverging based on vehicle value. Vehicles with a value between £10k and £20k saw average premiums fall by 1% in April, while lower priced vehicles experienced only marginal reductions of 0.2%. This split may point to changing underwriting appetites or shifts in claims cost assumptions across different vehicle classes.
Stephen Kennedy, Director at Pearson Ham Group, said: “Motor insurance pricing continues to soften, but we are now seeing more fragmentation in how prices are adjusting across customer segments and vehicle types. The sharp falls of recent months are slowing, and this may be the early signal of a market beginning to stabilise. As always, the direction of travel will be influenced by claims experience, repair cost inflation, and competitive dynamics in the months ahead. Insurers will need to remain agile and closely tuned in to these diverging pricing signals.”
Motor insurance pricing movements per region (by magnitude of monthly movement):
Home Insurance Premiums
The Price Index also reveals that home insurance premiums continued to edge downward in April 2025 but at a more modest pace. Prices fell by -0.4% over the month, taking the year-on-year decline to -4%. The median top-five quoted premium dropped to £212 in April, maintaining the downward momentum seen in recent months. But the data suggests this momentum may be slowing, particularly in key segments of the market.
Property type and size create pricing contradictions
The data reveals a distinct split across property types. Flats saw the sharpest monthly decrease at -0.7%, while detached houses have experienced the largest cumulative drop over the last year at -5%. In contrast, premiums for large homes with five or more bedrooms remained flat in April. Smaller properties (0–1 bedrooms) saw premiums fall by 0.5% in April, reinforcing the pattern that mid-sized homes are seeing more downward movement, while higher-value properties are now showing signs of pricing stabilisation.
Regional reductions remain mostly uniform
Premium reductions were broadly consistent across the UK, but the South East saw the steepest fall at -0.6%. This stands in contrast to the more level performance in other regions, where reductions were generally in the -0.3% to -0.5% range.
Frances Luery, Product Manager at Pearson Ham Group, commented: “Home insurance premiums are still trending downward, but the rate of change has clearly slowed. We're seeing a market in transition - one that’s likely approaching a price floor. The data points to a more nuanced landscape, where premium movements differ by property size, type and region. It’s particularly interesting to see large homes holding steady while other categories continue to fall. This reflects how insurers are fine-tuning their pricing strategies based on evolving risk and cost dynamics. As ever, market competition, weather-related claims, and inflationary pressures will shape where pricing goes next.”
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