What is the average price of UK car insurance?

Key takeaways

• The cost of car insurance is based on different things, including your profession, claims history, and location

• The rise in average car insurance comes down to things like claims pay outs, higher repair costs and longer repair times

• Always shop around and compare policies rather than accepting the first quote

• Adding a more experienced driver to your policy can reduce costs for young or inexperienced drivers

How much does car insurance cost in 2026?

According to our data, the average cost of a fully comprehensive car insurance policy is £518.56^{^} . Association of British Insurers (ABI) findings state that car insurance has fallen by £60 over the past year on average.

The amount of money you pay for car insurance depends on lots of different things from your job and age to your claims history and where you live.

But the price is also changes based on market conditions, and average car insurance costs have been rising steadily in the last few years.

Why are car insurance costs going down?

Car insurance premiums have been falling as some of the factors that drove sharp price increases in recent years have begun to ease.

Lower inflation, improved supply chains, and stabilising repair and replacement costs have reduced pressure on insurers, while increased competition has encouraged firms to cut prices to attract customers.

Despite these reductions, premiums remain relatively high because claims are still costly. ABI data shows insurers paid out around £3 billion in motor claims during the third quarter of 2025, with vehicle repair costs accounting for £1.9 billion.

The growing complexity of modern vehicles, including sensors, cameras and other advanced technology, continues to keep repair costs high and limits how far premiums can fall.

What affects the cost of car insurance?

Insurance costs for car cover depend on lots of different things and every car insurance policy is unique, to the driver and the car being insured. But some of the factors insurers take into account when calculating a premium include:

What other factors affect car insurance premiums?

Your car insurance premium may also be impacted by the following factors:

• The make, model, and age of your car

• Your car’s insurance group, all cars are grouped between 1 and 50 with cars in lower-down groups usually being cheaper to insure

• How long you’ve been driving

• Where you keep your car at night

• Any modifications you’ve made to your vehicle

• If you have any security or anti-theft systems installed

• Who else drives your car

• Whether you have a named driver on your policy

• If you have a no-claims bonus

Will car insurance costs keep falling?

While car insurance prices have been falling over the last year, the dramatic price cuts we saw throughout 2024 and 2025 are most likely going to grind to a halt.

Although some drivers may still see modest reductions or better deals, most forecasts suggest prices will level off rather than continue a sustained downward trend.

In fact, experts are warning that prices could actually start creeping back up by the end of the year.

How to get cheaper car insurance

The bad news is that insurance costs are rising for everyone, and average prices are significantly more now than they were a year ago.

But the good news is you don’t have to just accept a higher price and there are lots of things you can do to save money and lower your premiums. They include:

• Driving a cheaper car that’s less expensive to insure, our car insurance group checker can show you which group a car will be in

• Comparing costs and shop around when renewing or buying a new car insurance policy, there are lots of policies to choose from so never take the first offer you’re given

• Adding a more experienced named driver to your policy could cut your costs if you’re a young or inexperienced driver,

• Using a telematics policy, where the cost can go down if you’re able to show an insurer you’re consistently driving well, especially as a young or inexperienced driver

• Keeping your annual mileage down, but make sure you are being accurate when you tell your insurer how many miles you plan to drive

Compare car insurance with MoneySuperMarket

Comparing car insurance quotes on MoneySuperMarket is the best way to browse deals from multiple providers.

All you need to do is enter a few details about yourself, your car and driving history, and you’ll be able to see car insurance deals tailored for you and your vehicle.

Once you’ve found the best quote for you, click on the deal and you’ll go straight to the provider’s website.