Car insurance cost · ABI Q2 2026

£566 a year, on average

Q: What is the average cost of car insurance in the UK?

£566 in Q2 2026, according to the ABI's Motor Insurance Premium Tracker, which records prices actually paid across over 28 million policies a year. The 2025 annual average was £564.

Q: Why has my car insurance gone up?

Claims cost more. Insurers paid a record £3.2 billion in Q2 2026, the average claim rose 4% to £4,900 and windscreen repairs rose 7%. Your own price also reflects your age, car, postcode and claims.

Q: What is the government doing about car insurance costs?

The cross-government Motor Insurance Taskforce published its final report in December 2025, setting out actions by departments and regulators intended to stabilise and reduce premiums.

Q: Is it cheaper to pay car insurance annually?

Usually. When insurers charge for monthly payments, the FCA found APRs typically of 20–30%, with almost one in five customers paying over 30%. Some insurers don't charge for instalments.

That's what UK drivers actually paid for motor cover between April and June 2026. Premiums fell through 2025, then edged up as claims hit a record. Check how your quote compares.

Updated 6 October 2026 · Figures sourced and linked

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£566Average premium paid, Q2 2026, up £6 on Q1Source: Association of British Insurers, 29 July 2026

£564Annual average 2025, £58 below 2024Source: Association of British Insurers, 11 February 2026

£11.9bnPaid on 2.5 million motor claims in 2025Source: Association of British Insurers, 11 February 2026

12%Insurance Premium Tax included in every premiumSource: GOV.UK, accessed October 2026

The trend

Down through 2025, up again in 2026

The ABI Motor Insurance Premium Tracker covers over 28 million policies a year and records what drivers paid, not what they were quoted. Premiums fell from £622 at the end of 2024 to £551 in Q3 2025, then crept back to £566.

Claims explain the turn. Vehicle damage made up 63% of the £11.9 billion paid in 2025 (ABI), and Q2 2026 set a quarterly record.

Average motor premium paid · Q2 2026

£566

ABI Motor Premium Tracker

£520

£550

£580

£610

£640

Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026

Axis starts at £520 to show quarterly movement. Average price actually paid for motor cover. Sources: Q2 2026, Q1 2026, Q4 2025, Q3 2025. Earlier quarters use the revised figures implied by later ABI releases.

Quote checker

How does your price compare?

Type in a quote or renewal to see it against the national average, how much is tax, and what paying monthly adds at your APR.

Your annual quote or renewal priceAPR if you pay monthly25%

UK average paid, Q2 2026£566Type your own quote to compare it.

Pay monthly

£53

× 12 at 25% APR

Extra a year

£71

vs paying £566 up front

Of which IPT

£61

at 12%

Averages are what customers actually paid across over 28 million policies (ABI, Q2 2026); your age, car, postcode and claims history move your price far more than any national figure. The FCA found premium-finance APRs typically run 20–30% when firms charge for paying monthly (FCA); some charge nothing, so check the APR on your quote. Assumes 12 equal instalments and the 12% standard rate of Insurance Premium Tax included in the price.

Questions

Straight answers

What is the average cost of car insurance in the UK?

£566 in April to June 2026 (ABI), based on prices actually paid across over 28 million policies a year. The full-year 2025 average was £564, £58 lower than 2024 (ABI).

Why has my car insurance gone up?

Mostly claims costs. Insurers paid a record £3.2 billion in Q2 2026; the average claim rose 4% to £4,900 and windscreen repairs 7% to £283 (ABI). After falling through 2025, the average premium rose £6 in Q2 2026.

What is the government doing about car insurance costs?

The Motor Insurance Taskforce published its final report on 10 December 2025, setting out actions by government and regulators to stabilise and reduce premiums.

Is it cheaper to pay car insurance annually?

Usually. The FCA found APRs typically of 20–30% where firms charge for instalments, and almost one in five paying over 30%. Check the APR on your quote.

Sources

Where the numbers come from

We use primary sources only: the ABI, regulators and government. Figures were checked on 6 October 2026. Spot something out of date? The source link is the fastest way to check.

Association of British Insurers. Record £3.2 billion paid out to support motor insurance customers in Q2 2026. 29 July 2026.
Association of British Insurers. Motor premiums remain stable, but cost of repairs still high (Q1 2026). 30 April 2026.
Association of British Insurers. £11.9 billion paid out in 2025 to support motorists across 2.5 million claims. 11 February 2026.
Association of British Insurers. Three straight quarters of falling motor premiums (Q3 2025). 12 November 2025.
Department for Transport and HM Treasury. Motor Insurance Taskforce: final report. 10 December 2025.
Financial Conduct Authority. Premium finance market study: final report (MS24/2). 3 February 2026.
GOV.UK. Insurance Premium Tax. accessed October 2026.

Keep going

Motor insurance UK →Cover levels, the legal minimum and how to compare quotes properly.No claims bonus →Work out what your no claims discount is worth, and whether to protect it.Young & learner drivers →Black boxes, named drivers, fronting and learner rules.Car insurance groups →What groups 1 to 50 mean and who sets them.Temporary car insurance →Short-term cover vs adding a named driver.