Car Insurance Prices Rise for the First Time Since 2023 — Why, and How to Soften the Hit

After nearly two years of falling premiums, UK car insurance costs have turned upward again — and every region has felt it.

What happened

The average UK car insurance premium rose to £619 a year in Q2 2026, up 6.8% (around £39) on the previous quarter, according to Quotezone data — the first quarterly rise since the market peaked in 2023. Other trackers put the average closer to £719, similarly marking the first increase since late 2023.

Every UK region recorded a rise over the quarter. Yorkshire saw the steepest jump at 6.7%, closely followed by Northern Ireland at 6.4%, while the South West had the smallest rise at just 2%.

Why premiums are climbing

Insurers point to repair costs and claim complexity. Around £1.9 billion was spent on vehicle repairs in the latest quarter, up 3% on Q4 2025. Modern cars — particularly EVs and hybrids with advanced driver-assistance systems — are more expensive to fix, and general inflation in parts and labour has pushed claim costs higher across the board.

Checklist: How to keep your premium down

• Shop around at renewal, every year. Loyalty rarely pays with insurers — use a comparison site and get at least three quotes before auto-renewal kicks in.
• Increase your voluntary excess if you can comfortably afford it in a claim — this typically lowers your premium, but check the total cost isn't wiped out by a smaller no-claims discount.
• Consider telematics ("black box") policies if you're a lower-mileage or careful driver — insurers increasingly reward monitored driving with lower rates.
• Pay annually rather than monthly where possible — monthly instalments usually carry an APR that adds to the total cost.
• Check your job title and address entries are accurate — small inaccuracies can inflate quotes or invalidate a claim.
• Ask about multi-car or bundled home-and-car discounts if you have more than one policy to place.
• Build your no-claims discount deliberately — protecting it once you've earned several years can be cheaper than losing it to a small claim.

International comparison

UK drivers aren't alone in facing rising costs. US drivers have seen even steeper premium inflation over the past two years, driven by similar repair-cost and claims-severity pressures, according to the Insurance Information Institute. In Australia, the Australian Competition & Consumer Commission has also flagged rising motor premiums as a cost-of-living concern.

Key Numbers

• £619 average UK car insurance premium, Q2 2026 (Quotezone)
• Up 6.8% on the previous quarter — the first rise since 2023
• £1.9bn spent on repairs in the latest quarter, up 3% year-on-year

Sources

• Average UK Car Insurance Cost 2026 — Quotezone Index
• Average Car Insurance Cost UK: £719 in 2026 — Brumble

Educational content only — not financial advice.