Car insurance costs: Latest data indicates £14 rise in last quarter
Analysis shows that the average cost of an annual car insurance policy is now £399[1], rising by 3.6% from the previous quarter.
Go.Compare’s latest car insurance price index has revealed that the average cost of a car insurance policy between April and June 2026 was £399 - £14 more than in the previous quarter, equal to an increase of 3.6%.[1]
As well as uncovering that prices are on the rise, the Go.Compare Index also highlights that the most basic level of cover is on average the most expensive.[2] The average price of an annual third party only policy is £546 – over a third more expensive than third party, fire and theft cover at £382. Comprehensive policies are slightly more expensive than third party, fire and theft, which are in line with the overall average at £399 but offer a higher level of protection.
Other insights from the index include the UK’s cheapest region for car insurance, with Wales currently having the lowest premiums at an average of £327.[3] In contrast, prices in London sit at £577 – around 75% more than in Wales.
Meanwhile, young drivers continue to face the highest costs, with the median policy price sitting at £746 for under-25s,[4] and by occupation, maintenance workers have the lowest at an average of just £266.[5]
Cover is still currently cheaper than it was in both 2024 and 2025, according to the index, but experts at Go.Compare are warning that costs are expected to continue rising into next year.
Tom Banks, spokesperson for Go.Compare Car insurance, said of the latest figures: “Car insurance prices have mostly been on a steady decline since the end of 2024, but our latest data shows that premiums have now risen back to the same level as they were in Q3 2025.
“While this is still less than drivers were paying a few years ago, we’re expecting prices to continue rising into next year, with some projections suggesting increases as high as 12%.[6] If your car insurance is up for renewal in the next few months, it’s as important as ever to compare policies rather than just auto-renewing. This will allow you to check what the rest of the market is doing and identify whether your current insurer is offering you a competitive price to stay with them, or whether you could find lower premiums elsewhere to better mitigate the impact of the price rises.
“Remember that there are plenty of things you can try in order to lower your price, too, such as removing extras and timing when you buy – our research shows purchasing your policy 26 days before it’s due for renewal can save you over £150.[7] Make sure you don’t remove anything you might need though, otherwise you could be left without the protection you need when you go to make a claim.”
For more tips on how to save money on your car insurance policy, visit here.
To read the full report on the cost of car insurance, visit here.
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Alex McCormick
Notes to editors
[1] Based on the median premium of car insurance sales made through Go.Compare for dates between 1 April 2026 and 30 June 2026 inclusive for payment type "Annually".
[2] Based on the median premium of car insurance sales made through Go.Compare for dates between 1 April 2026 and 30 June 2026 inclusive for payment type "Annually" broken down by cover type.
[3] Based on the median premium of car insurance sales made through Go.Compare for dates between 1 April 2026 and 30 June 2026 inclusive for all policy type and payment type "Annually" broken down by region.
[4] Based on the median premium of car insurance sales made through Go.Compare for dates between 1 April 2026 and 30 June 2026 inclusive for all policy type and payment type "Annually" broken down by age groups.
[5] Based on the median premium of Car insurance policies sold through Go.Compare between 1 April 2026 and 30 June 2026, for the top 10 cheapest occupations, considering only comprehensive policies paid annually, where the proposer is the main driver aged 25–70 with at least 5 years no claims bonus, no convictions or claims, car value up to £50,000, in full-time employment (excluding retired), and where each occupation has at least 100 net sales.
[6] https://www.ey.com/en_uk/newsroom/2026/07/ey-latest-motor-insurance-results-analysis
[7] Based on car insurance sales made through Go.Compare between 1 October 2025 and 31 March 2026 inclusive, considering only up to 30 days before renewal, Annual payment type and Comprehensive policy type. For further information please contact:
Front Door Communications at go.compare@fdcomms.co.uk
Or you can call 02920 020360
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (CA).
More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/.