Has car insurance gone up?

According to the latest price index by Confused.com, the average cost of car insurance has increased for the first time since the end of 2023.

However, UK drivers may still be able to find cheaper premiums at renewal.

Our research

The Confused.com car insurance price index - powered by WTW - analyses more than 6 million anonymous car insurance quotes every quarter to find out how car insurance prices are changing. All prices listed here refer to comprehensive cover taken from this index.

We also conducted a nationally-representative survey of 2,000 UK drivers with car insurance policies via One Poll. This survey was conducted between 10 and 15 June 2026.

Are car insurance costs falling?

Car insurance premiums in the UK have gradually fallen since reaching a record of £995 at the end of 2023. However, the latest figure of £719 is £8 (1%) more expensive than just 3 months ago, marking the first increase since the end of 2023.

Despite a marginal increase compared to 3 months ago, the average price of a new policy now is still £38 cheaper than it was 12 months ago.

As ever, the cost of car insurance can vary based on location and age group. So, while some drivers are beginning to pay more, others are continuing to save.

For example, drivers in Northern Ireland are seeing a significant premium rise by £168 (20%) in the past 12 months to £1,020, on average. However, this is an exception to the rule when taking a broader view of car insurance prices in the UK. 

Scotland is the only other region to experience rising car insurance costs, with prices now around 1-2% more expensive year-on-year, on average.

Why is my car insurance still expensive?

“If prices are increasing, can I still save at renewal?”

Even with the latest data suggesting the average car insurance price is increasing, some drivers may still be able to reduce their premium at renewal. 

The latest price index found that almost half (49%) of those who received their renewal in the past 3 months saw a more expensive price compared to the previous year. 

With a renewal quote of around £70 on average, almost half (46%) of the same drivers went on to shop around and switch insurers, saving £82 on average.

More than 1 in 5 (22%) actually received a cheaper price at renewal, on average. But almost 1 in 5 (17%) still decided to shop and switch, saving £79, on average. This proves that even when car insurance prices are increasing, savings could still be made.

But for now, drivers are still mostly seeing a drop in prices when they shop around, as the price increases are only a reflection of trends in recent months.

What affects what you pay?

Personal reasons

• Previous claims: If you’ve claimed before – even if it wasn’t your fault – it can push up your renewal price.
• Job title changes: Your occupation can affect your premium. Some roles are seen as higher risk, especially if you drive more for work.
• Different car groups: If you’ve switched cars recently, cars in higher insurance groups usually cost more to insure.

External reasons

• Inflation and repair costs: Cars have more tech, and that can make repairs and replacements more expensive.
• Car thefts: Higher theft rates can push up prices for everyone.

How have car insurance prices changed over the past few years?

Car insurance prices are a never-ending rollercoaster, to say the least.

Looking back to the pandemic, fewer people were driving, which helped keep prices down. As restrictions were lifted, more people got back on the road. Combined with rising inflation, prices climbed through 2022 and 2023.

The average cost of car insurance hit £995 in Q4 2023. Since then, prices have been falling as insurers compete more strongly for drivers. 

Despite a continual downward decrease in car insurance premiums, the latest price index by Confused.com suggests some drivers are actually beginning to pay more.

Male drivers pay more than women

The gender gap between men and women has narrowed every so slightly over recent years. The latest gender gap of £141 shows the gap has closed by £4, on average, compared to 3 months ago.

However, the gap has remained fairly stagnant over the past year, with men (£772) continuing to pay considerably more on average than women (£631).

Insurers can’t price policies based on gender because of the EU Gender Directive. What they can price is risk, and some risk markers show up more often in men’s quotes.

This can factor in driving history, claim history, mileage, occupation and the type of car being insured. For example, men are more likely to drive expensive cars with larger engines. Because of this, claims are more expensive.

So while gender isn’t part of the calculation, the mix of other risk factors often means men end up paying more.

Some relief for younger drivers

Car insurance prices for young drivers are a double-edged sword. This age group has, for some time, faced the largest premiums. But, crucially, they’ve also seen some of the biggest price drops.

• 17-year-olds now pay £1,695 on average – £356 (17%) less than 12 months ago.
• 18-year-olds now pay £2,042 on average – £287 (12%) less year-on-year.

Prices may be dropping due to fewer claims and more safety tech in new cars. Many young drivers also choose telematics insurance policies.

These policies monitor driving habits, typically through a device fitted to the insured car or via an app. By exhibiting safe driving tendencies, insurers may reward young drivers with big savings at renewal. This is one reason behind steep decreases in premiums for younger drivers.

Elsewhere, the most significant change is for 51-year-old drivers, as prices have increased by £36, or 6%, in the past 3 months. The only age group likely to see an increase compared to last year’s price is 71+, as premiums have risen by £2, or 1%.

Other costs are still a factor

The overall cost of running a car isn't cheap, and new data from Confused.com reveals that the cost of claims made by customers has increased in recent years. 

The average price per paid-out claim has risen by 42% between 2020 and 2025 – from £3,842 to £5,464. Cars today are considerably more expensive to repair or replace, potentially causing providers to adjust their prices to reflect the risk of having to pay out more.

In addition, labour costs have increased in tandem with manufacturing costs, especially where newer cars are involved. A lot of newer cars are equipped with technology that may need recalibrating after a repair, increasing the overall cost.

Fuel costs had eased prior to 2026. However, instability since the beginning of the year, driven by conflicts around the world, means drivers are facing higher prices at the pumps. 

In addition, from September 2026, the freeze on fuel duty, which is currently capped at 5p, is set to be reversed. This means fuel duty will rise each year with inflation, making it even more expensive to fill up at the pump.

Right now, petrol costs 153p per litre on average, while diesel costs 170.6p per litre. Prices can range from 123.9p to 239.9p for petrol and 123.9p to 230p for diesel, depending on location. (Prices correct as of 23 June 2026).

If you want to find the cheapest petrol or diesel prices near you, you can use the Confused.com fuel price tool.

Getting cheaper car insurance

If you're looking for tips for cheaper car insurance, here are some ways that may help bring the cost down:

• Pay annually – Paying for your policy in one go rather than monthly can often work out cheaper. This is because you'll avoid paying interest over monthly instalments.
• Black box policy – A telematics policy could lower your costs, especially if you’re a careful driver. Young drivers might benefit from this type of insurance.
• Look at the cover type – Check whether the level of cover you’ve chosen suits your needs. Sometimes, comprehensive cover can be better value than third-party only.
• Shop around - Using price comparison websites like Confused.com before your renewal can help ensure you get the best deal possible.

Increase your voluntary excess and build up a no-claims bonus: Increasing your voluntary excess means you're willing to contribute more money in the event of a claim. You build up your no-claims bonus each year you drive without claiming on your insurance policy.

What our motor insurance expert says

“Drivers have benefitted from car insurance price drops for some time now. But now we’re seeing that prices are starting to increase slightly in recent months, which means motorists could soon see their price increase when it comes to their renewal.

“Car insurance prices are generally calculated based on risk and claims. And while there have been fewer reported claims in recent years, the increases we’re starting to see are likely down to the fact that when a claim is made, it’s more expensive for insurers to rectify. This isn’t something drivers can control, but it doesn’t mean to say they can’t still save money on their insurance.

“Shopping around when it comes to renewal is key to knowing you’re getting the best price. But not leaving it to the last minute could mean you save even more. That’s as our data shows that getting a quote 28 days before your renewal is due could save you as much as 53% on your price. So being organised and getting it sorted early can pay off.”

Matt Crole Rees Motor General Manager & Motor Insurance Expert

 

^{Source of data used for this page
More than 6 million quotes are used in the construction of each quarter’s insurance price index. This makes it the most comprehensive insurance index in the UK. Unless otherwise stated all prices referred to are for comprehensive cover.}

^{The index is compiled using anonymous data from all enquiries submitted on Confused.com. In line with the draft Office of Fair Trading (OFT) commitments on the use of competitor price data, the prices used for calculating the index are based on an average of the best five quotes received on Confused.com. The OFT closed on 1 April 2014 and the commitments are now governed by the Competition and Markets Authority (CMA).}

^{Page also refers to research carried out by One Poll on behalf of Confused.com of 2,000 UK drivers who have car insurance policies. This was conducted between 10 and 15 June 2026.}

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