{"id":122195,"date":"2026-06-25T08:00:00","date_gmt":"2026-06-25T07:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=122195"},"modified":"2026-06-25T00:37:02","modified_gmt":"2026-06-24T23:37:02","slug":"drivers-face-car-insurance-price-increase","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/drivers-face-car-insurance-price-increase\/","title":{"rendered":"Drivers Face First Car Insurance Price Increase in Two Years as Costs Threaten New Records"},"content":{"rendered":"\n

The latest figures come as many households continue to manage broader cost-of-living pressures. Although insurers have benefited from a reduction in the number of claims <\/strong>being submitted, the cost of settling claims has increased significantly across several categories.<\/p>\n\n\n\n

According to the latest car insurance price index published by Confused.com<\/strong>, the average premium increased by one per cent during the last quarter. The comparison site said this marks the first quarterly increase since the beginning of 2023.<\/p>\n\n\n\n

Falling Premiums Begin to Lose Momentum<\/strong><\/h2>\n\n\n\n

Despite the recent rise, drivers <\/a>are still paying less on average than they were 12 months ago. According to Confused.com, average premiums are currently five per cent lower than a year earlier, representing a reduction of \u00a338.<\/p>\n\n\n\n

The pace of those annual decreases, however, has slowed. The company noted that the latest yearly drop is considerably smaller than previous reductions, indicating that the downward trend may be weakening.<\/p>\n\n\n\n

Changes have not been evenly distributed across age groups<\/strong>. Drivers aged 51 experienced average premium increases of six per cent during the last three months, while 50-year-olds saw prices rise by five per cent. Younger motorists, meanwhile, continued to benefit from lower costs, with premiums falling by five per cent over the same period.<\/p>\n\n\n\n

Matt Crole-Rees<\/a>, motor general manager at Confused.com, said drivers had benefited from lower prices for some time but were now beginning to see modest increases. He stated that motorists could soon encounter higher costs when renewing their policies if the current trend continues.<\/p>\n\n\n\n

The company also highlighted potential savings for consumers who shop around before renewal. According to its data, obtaining a quote 28 days before a policy expires could reduce costs by as much as 53 per cent compared with purchasing cover on the renewal date itself.<\/p>\n\n\n\n

\"\"
Insurance premiums increase after two years of declines \u00a9Shutterstock<\/em><\/figcaption><\/figure>\n\n\n\n

Rising Claim Costs Continue to Affect Insurers<\/strong><\/h2>\n\n\n\n

According to Confused.com, one factor behind the renewed upward pressure on premiums is the increasing cost of handling insurance claims. While the number of claims <\/strong>submitted between 2020 and 2025 fell by 59 per cent, the average payout per claim increased by 42 per cent, rising from \u00a33,842 to \u00a35,464.<\/p>\n\n\n\n

Several claim categories recorded substantial increases over that period. Fire-related claims rose from \u00a36,440 to \u00a312,799, while damage claims increased from \u00a32,439 to \u00a34,990. Theft claims also became significantly more expensive, rising from \u00a311,067 to \u00a318,123. Other categories showed notable increases as well. Accident claims rose from \u00a33,748 to \u00a35,247, storm and flood claims increased to \u00a38,003, and windscreen claims climbed from \u00a3243 to \u00a3350.<\/p>\n\n\n\n

Mr Crole-Rees said insurance prices are generally calculated using risk and claims data. According to his assessment, the recent increases are likely linked to the higher cost of resolving claims when they occur, even though fewer claims are being made overall. He added that motorists cannot control those underlying costs<\/strong> but can still seek savings by comparing policies and arranging cover well before renewal dates.<\/p>\n","protected":false},"excerpt":{"rendered":"

UK drivers are paying more for cover once more, with average premiums increasing for the first time since 2023. Industry data suggests the recent period of falling prices may be starting to lose momentum. Car insurance costs rose by \u00a38 over the past three months, taking the average premium to \u00a3719. While prices remain lower than they were a year ago, experts are warning that motorists could face higher renewal costs in the months ahead.<\/p>\n","protected":false},"author":10,"featured_media":122197,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-122195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=122195"}],"version-history":[{"count":4,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122195\/revisions"}],"predecessor-version":[{"id":122202,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122195\/revisions\/122202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/122197"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=122195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=122195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=122195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}