Has car insurance gone up?

According to the latest price index by Confused.com, the average cost of car insurance is now £713 – a £22 (-3%) saving compared to 12 months ago

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 2 and 7 September 2026.

Play Video: UK car insurance prices September 2026 update - How to save on your car insurance

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 £713 is just £22 (3%) cheaper compared to 12 months ago, so car insurance costs have started to settle over the past year. 

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 of £209 (25%) over the past 12 months to £1,059 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 1-3% more expensive year-on-year, on average.

Why is my car insurance still expensive?

“It looks like prices have fallen, so why is my renewal quote more expensive?”

The latest data suggests the average car insurance price has gradually fallen since the beginning of 2025, but many drivers are still facing increased premiums at renewal.

In fact, more than half (51%) of drivers have been quoted increased renewal premiums in the past 3 months. That increase, £68 on average, could mean that drivers pay more than £800 for their car insurance. 

It means that with the average cost of car insurance being £713, some drivers may be paying £90 more by simply accepting their renewal price. However, those who shopped around and switched providers saved £80, on average.

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 beginning of the pandemic in 2020, fewer people were driving, which helped keep prices down. As restrictions were gradually 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 that, the latest price index by Confused.com shows it's likely that UK drivers may still be quoted an increased premium at renewal.

Male drivers pay more than women

Interestingly, the gender gap between men and women has narrowed over the past 12 months. This figure has remained stable around the £150 mark over recent years but has begun to shift.

The gap has narrowed slightly from £149 to £136 over the past year. However, men (£764) continue to pay considerably more on average than women (£628).

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 £1,755 on average – £253 (13%) less than 12 months ago.
• 18-year-olds now pay £2,083 on average – £259 (12%) less than 12 months ago.

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.

When comparing age ranges, UK drivers aged 60-69 pay the least of any group of this kind, with an average car insurance cost of £457. Drivers aged 70+ are the only age group to see their price increase over the past 12 months from £464 to £480 (3%).

Other costs are still a factor

On a broader level, UK drivers are battling further motoring expenses beyond car insurance. Recent reports suggest fuel prices are on the rise.

According to statistics from the Department for Energy Security and Net Zero, the average price of petrol is now 168.1p for petrol and 190.7p for diesel. For context, this time last year, petrol was 133.8p and diesel 141.7p, in comparison. That works out as an additional cost of £390 per year for petrol and £445 for diesel.

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. 

The freeze on fuel duty, which is currently capped at 5p, has been extended until 31 December 2026. However, from the beginning of 2027, fuel duty will rise each year with inflation, making it even more expensive to fill up at the pump.

Both fuel and insurance are necessities for drivers. Fuel is a volatile cost that fluctuates from month-to-month, whereas the cost of car insurance is locked in for 12 months. This matters because for motorists, finding a suitable car insurance policy for less can ease the financial burden over the course of 12 months.

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

“When you receive your car insurance renewal price, it’s easy to think that’s the best price you’re getting. But that’s not necessarily the case.

“It’s also worth remembering that your circumstances might change from year to year. You may need a different level of cover or to change some details, and this won’t be accounted for in the renewal price you receive. Running a new quote and changing your details or requirements if you need to guarantee that you’re getting the best policy at the right value for you. And that’s true even if your price has increased slightly in the past 12 months – chances are you can still beat your renewal price if you shop around.

“If you are starting to see your price creep up, you can still make some changes to minimise the damage. Shopping around early is key and can mean you save 53% compared to buying on the day your policy renews. Also, if you might benefit from sharing the driving with someone from time to time, adding them to your policy as a named driver not only offers better protection but can save money too.”

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 2 and 7 September 2026.}