Since motor insurance prices peaked at £995 in December 2023, prices had steadily decreased for nine consecutive quarters. However, the rate of price deflation has slowed significantly in 2026, with rises in three out of the first five months of the year: May (0.3%), April (2.3%) and February (0.4%).
While the data shows a price rise between March and May this year, car insurance premiums still recorded an annual fall of 5% (£38), with prices decreasing from £757 to £719, according to the longest established and most comprehensive car insurance price index in the UK. The index is based on price data compiled from over six million customer quotes per quarter.
Tim Rourke, EMEA P&C Leader, Insurance Consulting and Technology, said: “After a prolonged period of price reductions, this latest uptick suggests the market may be approaching an inflection point. While premiums remain below last year’s levels, underlying claims cost pressures have not gone away.
“Insurers continue to face repair cost inflation driven by vehicle complexity and supply chain disruption, as well as continued pressure from credit hire costs. If these cost trends persist, market profitability will come under even greater strain without premium increases over the remainder of 2026.”
Comprehensive Car Insurance – Quarterly Price Trends
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to the nearest whole number.
Inner London was the only region where drivers experienced a price fall (0.4%) during the three months since February 2026, reducing their premiums from £1,093 to £1,088. All other regions across the UK recorded price increases over the same period.
Drivers in Northern Ireland saw the largest percentage increase in the cost of comprehensive car insurance, with a quarterly rise of 8% (£73) with average premiums increasing from £947 to £1,020. This is the first time average premiums in the region have passed the £1,000 mark since December 2023. The smallest quarterly increase was seen in the West Midlands, where drivers saw a rise of 0.1%, with average premiums now costing £860.
Most Expensive Regions in the UK
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to nearest whole number.
More locally focused data shows motorists in West Central London benefited from the biggest quarterly fall in car insurance premiums. Prices dropped by 6% (£77), with premiums decreasing from £1,349 to £1,272, although it remains the country’s most expensive postcode. Drivers in Enfield saw a quarterly fall of 3% (£31), with average premiums now at £912 compared to £943 three months ago.
Despite a sharp quarterly rise of 8% (£33) in Llandrindod Wells, the Welsh town continues to be the cheapest place in the UK with prices on average now costing £471. Other towns where drivers continue to enjoy average premiums less than £500 include Shrewsbury (£498) and the South West England towns of Torquay (£482), Dorchester (£489) and Exeter (£490).
Drivers aged 50 and 51 saw the biggest quarterly price increases of 5% (£29) and 6% (£36) respectively, taking their average premiums to £611 and £610. At the other end of the spectrum, younger drivers benefited from some of the most substantial price falls. Drivers aged 22 benefited from a 5% quarterly price decrease, reducing their average premiums by £73 from £1,465 to £1,392. Drivers aged 17 saw the next biggest reduction in quarterly prices of 3% (£46), taking their average premiums to £1,695.
Steve Dukes, CEO at Confused.com comments: “While car insurance prices are still lower for customers shopping around now, our data shows this window is narrowing. Prices have been increasing now for a few months, and drivers could soon start to see this when they shop around or renew, which is when competitive pressure across the market will intensify.
“Claims payouts have increased since 2020, and that pressure isn't easing anytime soon. This makes it a critical moment for insurers to maximise their data capabilities, to be more competitive, more responsive, and better placed to win customers who are actively seeking value. The insurers who have invested seriously in data will be the ones who come out ahead.”
1 This latest quarterly data release by the WTW/Confused Car Insurance price Index covers the three-month period March 2026 to May 2026.
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