There’s bad news if your car insurance is due for renewal over the next couple of months, as new data shows the prices of policies are on the rise.
Confused.com claims to have the most comprehensive car insurance price index for new premiums in the UK, and looked at more than six million quotes generated by the site in the past three months.
The results showed that the average fully-comprehensive quote is now £719, up £8 on three months ago. More worrying is that results show a turn in the tide for insurance costs, which have generally been falling in recent years.
Negative long-term trends
Although the rise is small, Confused.com says that the outlook is not good for drivers already squeezed by rising fuel prices. Further rises are expected in line with data from the Association of British Insurers regarding the cost of new cars.
When the comparison site looked into reasons why premiums are starting to climb, it found that the cost of claims made by its customers has been on the rise, causing insurers to raise their prices to reflect the added risk.
According to the data, the average price per claim that was paid out has risen by 42% between 2020 and 2025, jumping from £3842 to £5464.
It did note that the number of claims being made had dropped by 59% over the same period. Confused.com says this suggests that while fewer incidents are being reported, today’s complex cars are highly more expensive to fix.
Parts costs have risen, as has labour, with technicians needing extra training to recalibrate complex electronics and work with high-voltage systems in electric cars. Write-offs also present a problem, as car prices have shot up, meaning replacements are more expensive.
Tips for saving on insurance renewals
Confused.com is keen to stress that buyers can still save on their car insurance by shopping around, but timing is key.
It advised that drivers are most likely to look for new insurance 19 days before their renewal is due but don’t buy until 10 days before. However, getting a quote 28 days before your renewal is when the firm’s data suggests prices tend to be lower.
Other advice includes not underestimating your mileage. Driving fewer miles might seem like you present less risk. However, the average insurance price for driving 4000 miles a year is £772, compared with £614 for 12,000 miles, suggesting that driving more indicates to an insurer you’re more experienced behind the wheel.
Data also shows that sole drivers insured on a car pay £811 for their insurance versus £697 paid by those who have an additional named driver, while investing in a steering wheel lock or tracking device could also save you money longer term.
Ask HJ
What car would you recommend with low insurance costs?
I own a 2023 Lexus NX450H which was stolen and recovered. I have had a Ghost11 imobiliser attached plus security cameras but my insurance costs have rocketed to round £2000 pa plus most not wanting to offer sensible quotes. I love the build quality and PHEV engine but am seriously considering changing to another car with lower insurance. I could go for something a little smaller but needs to be a SUV. Any suggestions on what I could consider.
You could consider a Hyundai Tucson or the related Kia Sportage. These are in a much more premium-feeling proposition than you might expect, and the plug-in hybrid version sits in a much lower insurance group than the Lexus.
Answered by Matt Robinson
