Motor insurance premiums continue to increase, new data shows

London is the most expensive place to insure your vehicle and Third Party, Fire and Theft (TPFT) is currently the cheapest type of car insurance policy

Go.Compare car insurance has today released new data, showing that the average car insurance premium has risen by 35% in 12 months*.

The latest price index from Go.Compare car insurance shows that in Q2 2022, the average price of car insurance was £347, and then in Q4 2023, it had risen to £465, an increase of 35%. The report also revealed that the most expensive place to insure your car is in London, where the average insurance premium costs around £678 a year, which is 78% more expensive than the South West, where the median cost is £371.

Commenting on the index, car insurance spokesman, Tom Banks, said: “This updated report shows that car insurance premiums, whilst changing each quarter, have been steadily increasing since in the start of 2022, and between Q3 and Q4 2023 alone, premiums jumped by 10%.”

The data also revealed that currently, the cheapest type of car insurance was third party, fire and theft cover (TPFT), which costs £456 annually, slightly lower than the average premium for a comprehensive policy (£467).  According to the Index, third party only (TPO) insurance policies cost £607, almost 30% higher than comprehensive cover.

Tom continued, “Usually, you would expect the most basic level of cover to be the cheapest, but for car insurance, Third Party Only (TPO) policies are the most expensive. It was surprising to see that TPFT policies came out as the cheapest type of policy- it just goes to show how things are changing when it comes to pricing.

“The increasing costs of premiums is being attributed to the rising costs of replacements and repair costs, as well as inflation. We are now seeing these costs being passed onto the policyholder, who is having to foot the bill for these increases.”

In addition, recent research from Go.Compare found that over 80% of motorists have seen their insurance premiums increase this year.** And in an effort to minimise the impact of these rising costs, policyholders are taking matters into their own hands, with 55% of respondents saying they now make sure that they shop around at renewal.

If you have found that your car insurance premiums have increased, you may be able to shop around and find a better deal elsewhere.  Go.Compare has compiled 18 tips on how to get cheaper car insurance, some of these include: 

  • Don’t leave it until the last minute: Data from Go.Compare has revealed that the best day to renew insurance on your car is 27 days before your renewal is due.*** The same data also found that the most expensive time to buy your new policy is the day the renewal is due. On average, the longer you leave it to renew your car insurance policy, the more you are going to pay.   
  • Mileage: Statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your car insurance will probably be more expensive than someone who drives only 6,000 miles. While this isn’t always guaranteed, simply driving less could help you lower the cost of your car insurance and it remains important to estimate your mileage as accurately as possible.
  • All in a day’s work: It may be worth thinking about how you describe your job and the work that you do. If, for example, you don't commute, you may be able to find a cheaper policy by describing your insurance as being 'for social use’.

Also, the way you describe your job can affect your premium. For example, a 'chef' might pay a different premium to a 'cook’ as even though the roles are very similar in reality, the insurers may treat them differently. But be honest or you risk invalidating your policy.

Tom concludes: “With premiums on the increase, it’s more important than ever that you shop around at renewal as insurance companies will change how they price for certain risks. Just because one insurance company was the right policy for you last year, it doesn’t mean it will be the same this year.”

For more information, and to read Go.Compare’s report on the “Cost of car insurance”, please visit:         

Contact Information

Rubie Barker

Notes to editors


For further information please contact:

*Cost of car insurance by quarter. Median premium paid by all customers of all ages, for annual payments all car insurance policies bought through Go.Compare. More information can be found here:

**These findings are from a study released by Sago between January 26-29, 2023, among a random selection of 2,219 of GB adults ages 18+ who are online panelists of Sago’s Community.

The results were weighted by age, gender, region, and ethnicity to match the population, according to Census data. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding. Excerpts from this release of findings should be properly attributed, with interpretation subject to clarification or correction.

Sago is the global research and data partner that connects human answers to business questions. Combining a legacy of impact, global reach, and innovative spirit, Sago enables clients to solve business problems through extensive audience access and an adaptive range of qualitative and quantitative solutions.”

*** Average premium paid by all customers over the age 18, for annual fully comprehensive car insurance policies bought through Go.Compare between Jan and Nov 2023.

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 (FCA).

More information can be found here or here