Is Car Insurance Going Up In 2026?

Is car insurance going up in 2026? For most UK drivers the answer is no, not yet. Average premiums are broadly flat or still falling year on year after two years of steep increases, but the rate of decline has slowed and some age groups and regions have started to creep up again.

The full picture depends on whether you look at prices paid or prices quoted, and on your age, postcode and vehicle. Below we set out the latest 2026 figures from the Association of British Insurers (ABI) and from industry price indices, the regions bucking the downward trend, and what is pushing renewal quotes in either direction.

• The ABI reported the average premium paid held steady at £560 in Q1 2026, up just 0.2% on the previous quarter but still £20 lower than a year earlier.
• Quoted prices for new comprehensive cover have fallen around 9% over the past year, though that is a smaller fall than the 13-18% drops seen in earlier quarters.
• Some drivers in their late 40s and 70s, plus parts of Northern Ireland and a handful of towns, are already seeing small rises.
• High repair costs remain the main upward risk for premiums later in 2026.

Is car insurance going up or down in 2026?

Car insurance in 2026 is broadly stable, with premiums still slightly lower year on year but no longer falling sharply. The headline trend is one of stabilisation rather than a fresh rise, though early signs of an upturn are appearing in some segments.

The Association of British Insurers (ABI) Motor Insurance Premium Tracker, based on prices actually paid across more than 28 million policies a year, put the average premium at £560 in Q1 2026 (ABI, 30/04/2026). That was up just £1 (0.2%) on Q4 2025, but down 3.4% on the same quarter a year earlier.

Quoted prices for new comprehensive cover tell a similar story. Across the wider market, average quotes have dropped around 9% over the past 12 months, but that is a softer fall than the 13% to 18% annual drops recorded in the previous five quarters. Within that, individual months have wobbled both ways, with small rises in some months offset by larger falls in others.

So the direct answer: premiums are not broadly going up in 2026, but the long downward run is levelling off. Whether your own renewal rises depends heavily on your circumstances.

How much is the average car insurance premium in the UK now?

The average UK car insurance premium in 2026 is around £560 for prices paid and roughly £711 for new comprehensive quotes. The gap exists because the price you actually pay (including renewals and loyal customers) is usually lower than a fresh quote for new cover.

The ABI’s tracker is the only measure based on what customers pay rather than what they are quoted, which is why its figures sit lower. Quoted prices for new business have fallen by around £284 (29%) since the December 2023 peak of £995, across nine consecutive quarters of decline.

It is worth comparing both numbers against your own renewal. If your quote is well above £711 and you have a clean record, shopping around can often bring it back towards the market average.

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Why is my car insurance going up when I haven’t claimed?

Your car insurance can go up at renewal even without a claim because insurers price on the wider risk and cost picture, not just your personal record. Rising repair and parts costs, your age band, your postcode and changes to your vehicle’s risk rating all feed into the price.

The single biggest upward pressure in 2026 is the cost of fixing cars. The ABI reported that of the £2.9 billion insurers paid in claims in Q1 2026, £1.9 billion went on vehicle repairs, up 3% on the previous quarter. The average accidental damage claim rose to £3,699, up 8% in a single quarter, as more complex vehicles with sensors and cameras cost more to repair.

Other reasons a no-claims renewal can still rise include:

• You have moved into an age band insurers treat as higher risk, such as the late 40s or over 70s.
• Crime or claims rates in your postcode have increased.
• Your car now carries a higher Vehicle Risk Rating because newer models can be costlier to repair.
• You pay monthly rather than annually, which usually adds interest to the total.

If your renewal has jumped, it is worth checking how you pay. Our guide to monthly vs annual car insurance explains how spreading the cost can add to the headline premium, which is not the only cost to weigh up.

Which drivers and regions are seeing prices rise?

Most drivers are still seeing year-on-year falls, but certain age groups and regions have started to rise again in 2026. The clearest increases are among drivers in their late 40s and 70s, and in parts of Northern Ireland and a few specific towns.

Over a recent three-month window, quoted prices rose for drivers aged 49 (up around £12, 2%), 70 (up around £13, 3%) and 71-plus (up around £9, 2%). By contrast, the youngest drivers saw the largest falls, with 17-year-olds paying around £517 (23%) less than a year earlier.

On region, Northern Ireland has bucked the national trend, rising for a second consecutive quarter with premiums up £113 (14%) from £834 to £947, making it the second most expensive region in the UK. Falkirk and Chelmsford also recorded notable increases.

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Why are repair costs pushing premiums up?

Repair costs are pushing premiums up because modern cars are more expensive to fix, and repairs make up the largest share of what insurers pay out. The ABI reported that motor insurers paid £11.9 billion in claims across 2025, with repairs the dominant driver.

Advanced safety technology is a key factor. Sensors, cameras and driver-assistance systems built into bumpers, windscreens and panels mean even minor knocks can trigger expensive part replacements and recalibration. The ABI put the average accidental damage claim at £3,699 in Q1 2026, up 8% on the previous quarter.

Parts prices, labour and the rising complexity of vehicles all add to this. As long as repair inflation runs ahead of general inflation, it limits how far premiums can keep falling and creates the risk of renewed increases later in 2026.

If your car is damaged in a low-speed knock, it pays to know your options before claiming. Our guide on what to do if your car is damaged in a car park walks through the practical steps.

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Will car insurance get cheaper in 2026?

Car insurance may get slightly cheaper in 2026 for some drivers, but the steep falls of 2024 and 2025 are unlikely to continue at the same pace. The market is closer to a floor than a fresh round of large cuts.

The Government’s Motor Insurance Taskforce published its final report on 10 December 2025, noting that the average premium paid fell £56 between Q3 2024 and Q3 2025. The taskforce ruled out direct pricing interventions such as social tariffs or a government reinsurance facility, instead pointing to longer-term reforms and further FCA analysis, including a report on premium finance during 2026.

Two factors could push prices back up. First, high repair and claims costs remain a persistent pressure. Second, the ABI warned that any rise in Insurance Premium Tax (IPT) could reverse months of progress. IPT already adds 12% to most general insurance policies, and the ABI estimates it adds around £98 a year to a typical motor and home insurance bill.

For drivers, the practical takeaway is to treat 2026 as a year to shop around rather than assume automatic savings.

Is electric car insurance more expensive in 2026?

Electric car insurance can still be more expensive than petrol or diesel cover, mainly because of higher repair and battery costs, though the gap has narrowed as more EVs reach the road and repair networks mature. Premiums vary widely by model, so it is worth quoting individually rather than assuming a fixed surcharge.

Electric vehicles often carry higher-value batteries and bespoke parts, and a damaged battery pack can be costly to assess or replace. As repair expertise spreads and more insurers compete for EV business, pricing has become more competitive than it was a couple of years ago.

If you want to keep costs down, usage-based cover can help safer or lower-mileage drivers. Our explainers on telematics insurance and how a black box policy works show how driving data can reduce premiums for some drivers.

How can I stop my car insurance going up at renewal?

You can reduce the chance of a rise at renewal by shopping around before you auto-renew, adjusting how you pay, and keeping your details and excess sensible. Loyalty rarely pays, so comparing the whole market is the single most effective step.

• Compare quotes around three to four weeks before renewal, when prices are often lowest.
• Pay annually if you can, to avoid the interest added to monthly instalments.
• Increase your voluntary excess only to a level you could afford to pay.
• Add a named experienced driver where appropriate, and keep your annual mileage accurate.
• Consider a telematics or black box policy if you are a lower-mileage or newer driver.
• Check whether a higher-spec but lower-risk-rated vehicle would cost less to insure next time.

Safer young drivers in particular can sometimes save in the region of several hundred pounds a year by combining shopping around with a telematics policy (Free Price Compare research, June 2026). If you use your car for work, check whether you need business car insurance, as the wrong cover class can invalidate a claim.

Compare quotes before you renew

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• Business Car Insurance-Free Price Compare