From Yahoo Finance: 2025-06-10 10:02:00

Motor insurance premiums have unexpectedly dropped by 17% over the past year, contrary to industry predictions. GlobalData poll indicates 22.7% of professionals expected substantial premium increases due to rising repair costs and supply chain disruptions. Despite the decline, insurers are focusing on customer retention amidst economic challenges.

The drop in motor insurance premiums can be attributed to factors like reduced inflation and increased industry competition. Despite this, claims costs have risen by 13% in 2024. The disparity between expectations and reality highlights the volatility of the market and the impact of economic conditions, claims trends, and competition dynamics.

Read more: Motor insurance premiums drop despite industry expectations