Has car insurance gone up?

The average cost of car insurance  is down, but some drivers are facing higher renewal quotes.

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 3 and 10 March 2026.

Are car insurance costs falling?

Yes. Car insurance premiums are falling for most. However, some drivers are beginning to pay more.

Car insurance prices have been dropping since the start of 2024, after hitting a record £995 at the end of 2023. The average price of a new policy is now £66 cheaper than it was 12 months ago. Despite that, drivers that live in certain locations, or within specific age groups, are beginning to pay more for car insurance, on average.

Premiums in some areas of the UK are higher now compared to 3 months ago. For example, drivers in Northern Ireland, Falkirk and Chelmsford are seeing increases of £41 (5%), £33 (6%) and £16 (3%), on average. However, it's important to state that these locations are exceptions to the rule when taking a broader view of car insurance prices in the UK.

Prices rose sharply following the COVID-19 pandemic: repairs cost more, parts were harder to get, and inflation drove up the cost of claims. Now insurers are competing harder, and claims costs have started to settle. That’s helped bring prices down to their lowest point since March 2023.

Why is my car insurance still expensive?

“You say prices are falling, but my renewal’s gone up.”

Even when the average car insurance price is falling, some drivers still see increases at renewal. The latest price index found that 39% of drivers who received a renewal quote over the past 3 months saw their price rise by £68 on average.

So, what can you do to combat a renewal price rise? Shopping around still pays. Among drivers quoted more at renewal, 46% switched insurers and saved £72 on average.

Some drivers did get a cheaper renewal. 32% paid less on average. But even then, 24% still compared prices and saved another £72.

Your renewal quote isn’t always the best deal available. Insurers don’t price you off the national average. They look at your details and what’s happening in the market. That’s why your costs can rise even while the average falls.

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. This has helped ensure a continual downward decrease in car insurance premiums as we progress into 2026. While most still benefit from cheaper prices at renewal, some drivers are actually beginning to pay more.

Male drivers pay more than women

Prices are continuing to fall for both women and men. But on average, men (£765) still pay more than women (£620).

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

When it comes to car insurance prices for young drivers, it's a double-edged sword. This age group still pays the most, but they’ve also seen some of the biggest price drops.

• 17-year-olds now pay £1,741 on average - £517 (23%) less than 12 months ago.
• 18-year-olds now pay £2,082 on average - £352 (15%) 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.

Other costs are still a factor

Despite falling car insurance premiums, the overall cost of running a car isn't always cheap.

In general, the cost of repairs and parts is increasing as vehicles become more technologically advanced. The more it costs to manufacture specialist parts, the greater the cost is to motorists.

Fuel costs had eased prior to 2026. However, the instability in recent months 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 147.2p per litre on average, while diesel costs 170.9p per litre. Prices can range from 114.1p to 210p for petrol and 116.4p to 220p for diesel, depending on location. (Prices correct as of 23 March 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

“Car insurance prices are at the lowest they’ve been for a while – but data also shows prices are creeping up for some drivers, and stalling for others. And this could mean price increases are on the horizon.

“This, alongside fuel and tax costs increasing this year, will mean more financial pressure for drivers. So any further savings you can make on your insurance now will be hugely beneficial in the long term.

“And this is why it’s more important than ever to shop around, not only to lock in the best price now, but to ensure you are getting the best deal. The biggest thing to consider is when you shop around. Leaving it until the last minute can in fact mean you pay more. Our data shows that 28 days is the ‘sweet spot’ for when drivers typically pay the least for their insurance. 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 3 and 10 March 2026.}

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