Car insurance prices trending upwards again
Car insurance prices are increasing again for the first time since 2023, according to the latest car insurance price index by Confused.
Based on more than six million quotes, it found that premiums have risen one per cent in the last three months to £719.
However, they still remain five per cent cheaper on average than they were a year ago.
Average prices in the last quarter rose six per cent for drivers aged 51, while 50-year-olds saw premiums increase by five per cent. Younger drivers though saw premiums continue to fall, down five per cent in the last three months.
Meanwhile, the average payout per claim has risen by 42% between 2020 and 2025, from £3,842 to £5,464, although the number of claims submitted has actually fallen 59% during this period.
Price increases
Matt Crole Rees, motor general manager at Confused, said: “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. 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.”
