Has car insurance gone up?

The average cost of car insurance  is down, but drivers are still getting 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 4 and 9 December 2025.

Are car insurance costs falling?

Yes.

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 £111 cheaper than it was 12 months ago.

A lot pushed prices up after 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. Our research found that 42% of drivers who received their renewal between September and November 2025 saw their price rise by £72 on average.

The upside: shopping around still pays. Among drivers quoted more at renewal, 47% switched insurers and saved £87 on average.

Some drivers did get a cheaper renewal. 29% paid £59 less on average. But even then, 26% still compared prices and saved another £63.

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?

Prices have been a bit of a rollercoaster.

During 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.

Male drivers pay more than women

Car insurance prices are coming down for most drivers. But on average, men still pay more than women.

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. Men are more likely to drive higher-value cars, which cost more to repair or replace. They’re also more likely to have motoring convictions, which can raise the chance of a claim.

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

Young drivers still pay the most, but they’ve seen some of the biggest price drops.

• 17-year-olds now pay £1,932 on average - £635 (25%) less than 12 months ago.
• 18-year-olds now pay £2,262 on average - £504 (18%) 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 track driving habits, so safer driving can mean lower prices.

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 have eased compared to recent years, but prices still vary widely depending on where you fill up. Right now, petrol costs 136.4p per litre on average, while diesel costs 145.4p per litre. Prices can range from 125.9p to 178.9p for petrol, and 132.7p to 187.9p for diesel, depending on location. (Prices correct as of 23 December 2025).

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 has been a real pressure on household budgets over the past couple of years. So seeing prices come down will be a relief for many drivers, especially at a time when other motoring costs are expected to rise.

"But cheaper averages don’t always mean cheaper renewals. Prices are still changing a lot depending on who you are and where you live, which is why shopping around can make such a difference."

Rhydian Jones Commercial Director & Motoring 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 4 and 9 December 2025.}