UK car insurance news: premiums hold at ~£566 in 2026

Falling premiums have stalled — and quoted prices have now turned up

After the record highs of 2024, UK car insurance spent most of 2025 falling fast. That trend has now flattened. The Association of British Insurers (ABI) reports that the average price paid for comprehensive motor cover was around £566 in the second quarter of 2026 — up £6 (1%) on the previous quarter, but still about £30 lower than a year earlier. The Confused.com Price Index, which measures quoted premiums rather than prices actually paid, puts the typical figure higher at £719 — up £8 (1%) on the quarter, the first quarterly rise in over two years, though still £38 (5%) lower than a year earlier.

The two headline numbers differ because they measure different things: the ABI tracks premiums genuinely paid by policyholders across a representative book, while Confused.com tracks the cheapest quote a typical shopper is offered. Both point the same way for 2026 — the market has found a floor, and the easy savings of the last two years are largely banked. Behind that floor sit stubborn cost pressures: Insurance Premium Tax remains at 12%, repair labour and parts inflation continues to run hot, ADAS sensor recalibration can turn a £300 bump into a £1,500 bill, and theft payouts and the cost of more than a million uninsured drivers keep feeding into everyone’s renewal.

Regulation is the other big 2026 thread. The FCA’s Consumer Duty, now in its third year, continues to force insurers to evidence “fair value”, and the regulator’s premium-finance scrutiny is estimated to be saving people who pay monthly around £157m a year. This page is where we publish the time-sensitive analysis that does not belong in our evergreen guides — index refreshes, rule changes and market moves — each one dated and kept in the archive as a historical record. For the underlying numbers by age, region and vehicle, start with the 2026 Cost Index.