The surprising parking place that could cause an increase in your car insurance costs

A new study has found that drivers who keep their car in a garage overnight pay £24 more per year for their car insurance on average – despite it seeming to be a more secure parking location.[1] The average annual premium is £647 for those who store their car in a garage, compared with £623 for those who usually park elsewhere overnight.

The data comes from Go.Compare Car Insurance, which analysed its sales data to show the difference is most pronounced for drivers with third-party only cover. On average, third-party only policy costs £790 for those who leave their car in a garage overnight, while those who park elsewhere pay £54 less at £736 – the largest difference of any policy type. Third party fire and theft policies are also more expensive, costing £17 more per year for drivers who park in a garage.

Go.Compare’s data also suggests fewer drivers are now using garages to store their cars. Between 2023 and 2025, the site saw a 3% drop in car insurance policies for drivers who parked their car in a locked garage overnight - the largest decrease of any parking location.[2]

Instead of using it to park their cars, it appears that many are converting their garages into extra rooms. Nearly a fifth (17%) of people living in a home with a garage say they have converted it in the last five years.[3] Among those who have converted their garage, the most common uses include  a home gym (38%), a utility room (24%) and a home office (23%).

Tom Banks, car insurance spokesperson at Go.Compare, said: “Car insurance is often cheaper for those who park in more secure locations, so it might be a surprise to see that those who park in a garage actually end up with higher costs on average. 

“One possible reason for this is likely related to cars increasing in size over recent years. This steady growth has made it much harder to fit cars in garages, which could be leading to an increase in claims for scrapes and bumps while parking in a garage, driving up premiums as a result.

“While parking in a garage could lead to more expensive premiums, we’d still suggest that drivers prioritise their vehicle’s security when choosing where to leave their car overnight. This will minimise the risk of theft and, in turn, the possibility of you having to claim. Whereas leaving it in a less secure location could increase this risk. If you have to claim, your premiums will likely go up as a result, meaning you could cancel out any savings you made by parking elsewhere in the first place.

“Ultimately, you should pick your parking spot based on where it’s least likely to be damaged or stolen. If that means leaving it in the garage, even if it results in a slight rise in your premiums, it could be the better option in the long run.”

Overall, the most common parking spot is the driveway at home, used by nearly two-thirds (64%)  overnight, while a fifth said they leave their vehicle on the road outside their home.[2]

More statistics on garage usage can be found on Go.Compare’s website.

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