Price deflation has slowed markedly in 2026, with prices rising in four of the first eight months: June (1.9%), May (0.3%), April (2.3%) and February (0.4%). However, more recent price decreases in July (-1.6%) and August (-1.1%) were enough to produce a modest quarterly fall of 0.8%.
Average premiums are now £282 lower than when motor insurance prices peaked at £995 in December 2023, according to the longest established car insurance price index in the UK, which 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: “Drivers have benefited from a more stable pricing environment in 2026, but the underlying cost of settling motor claims remains under pressure. Increasing repair complexity, rising repair costs and ongoing inflation uncertainty continue to create challenges for insurers to navigate.”
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to the nearest whole number.
Drivers in Leeds and Sheffield saw the biggest price drop over the three months since May 2026, with premiums falling 3% from £798 to £778. Motorists in Manchester / Merseyside and South Wales experienced the next largest reduction in prices, with premiums down 2% to £790 and £558 respectively. Drivers in Northern Ireland recorded the steepest percentage rise in the cost of comprehensive car insurance over the three months since May 2026, with average premiums up 4% (£39) from £1,020 to £1,059. The South West of England recorded the next largest percentage increase in premiums, with prices up 3% to an average of £520.
Source: WTW / Confused.com Car Insurance Price Index. *Average values rounded to nearest whole number.
More locally focused data shows motorists in both the City of London and Halifax, West Yorkshire, benefited from the largest quarterly fall in car insurance premiums, with prices on average down by 6% in both areas to £980 and £754 respectively.
West Central London remains the UK’s most expensive postcode for car insurance, where average premiums have edged up 1% to £1,281. At the other end of the scale, Llandrindod Wells remains the cheapest place in the UK for car insurance, with average premiums now at £474. The Welsh town is now the only postcode where average premiums remain below
£500, after 1–4% price rises pushed Shrewsbury (£503) and the South West England towns of Torquay (£503), Dorchester (£503) and Exeter (£505) above that threshold.
Drivers aged 51 saw the largest quarterly price fall, with average premiums down 5% (£28) from £610 to £582. Those aged 47 recorded the next biggest reduction, with prices falling 3% (£20) to £634. By contrast, younger drivers saw some of the sharpest price rises. Drivers aged 17 and 19 faced the largest quarterly increase of 4% taking their average premiums to £1,755 and £1,853 respectively.
Steve Dukes, CEO at Confused.com said: “Car insurance prices are more stable now than they have been in recent years. At the same time, we know many customers are also seeing their renewal price increase, which can lead to more customers shopping around. And this is a clear opportunity for insurers to be competitive when it comes to new business pricing. Insurers that are using data and customer insight to create genuine choice and value for consumers will grow in this market.”
1 This latest quarterly data release by the WTW/Confused Car Insurance price Index covers the three-month period June 2026 to August 2026.
|
