While the rate of decline had slowed to just 0.2% for Q4 2020, premiums have now fallen for four consecutive quarters.
Graham Wright, UK lead of P&C personal lines pricing at Willis Towers Watson, said: “Looking across 2020 as a whole, prices fell reflecting the impact of Covid-19 lockdown measures on the nation’s driving and consequential claims experience.
“However, most of that reduction was evident in the middle part of the year with more stable trends of late reflecting the competing upwards pressure on new business pricing arising from the forthcoming implementation of changes in response to the FCA’s market study.”
Louis O’Shea, CEO at Confused.com, said: “People are increasingly sensitive to price in the current economic climate, meaning we’re seeing more and more people shopping around as they look to make savings.
“Those shoppers are seeing some of the biggest savings on their car insurance for a long while and it couldn’t come at a better time.”