Drivers across the UK could see their car insurance premiums become more expensive, according to new figures.
Data analysed by Confused.com reveals the typical price paid for a car insurance policy in Britain has increased by one percent compared to three months ago.
On an average car insurance premium, this equates to a relatively minor cost increase of £8 for annual cover.
However, while the scale of the increase may be small, Confused.com says it represents the first time prices have trended upwards since the end of 2023.
For drivers used to seeing their premiums reduce over the last 30 months, any additional expense will be unwelcome – particularly given ongoing cost-of-living challenges.
Insurance premiums could be going up
Some six million insurance quotes were analysed by Confused.com to generate the company’s latest price index, allowing for a broad range of factors to be considered.
According to this latest data, most drivers should still see a reduction in price when shopping for car insurance, with prices having fallen by an average of £38 across the past 12 months.
Although this may sound positive, it reflects an average reduction of only five percent, whereas the car insurance price index fell by around 14 percent a year ago.
This suggests that while insurers are still offering lower prices to some drivers, the trend appears to be turning towards pricier premiums in the near-future.
Fewer claims made, but more expensive to fix
According to Confused.com, the average price paid for a claim has risen by 42 percent between 2020 and 2025, up from £3,842 to £5,464.
This comes as the overall number of insurance claims has fallen by 59 percent. It suggests that while fewer incidents are being reported, those that are have become far more expensive to resolve.
Matt Crole-Rees, motoring expert at Confused.com, said: “Drivers have benefited 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. But not leaving it to the last minute could mean you save even more. That’s as our data shows that getting a quote 28 days before your renewal is due could save you as much as 53 percent on your price. So being organised and getting it sorted early can pay off.”
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