Car insurance premiums see minor third quarter dip as market stabilises

Comprehensive car insurance premiums have fallen by 0.8% over the past three months, reversing the trend of moderately increasing prices seen across the first half of 2026.

This is according to the latest Car Insurance Price Index – released yesterday (23 September 2026) by Confused.com in association with WTW – which revealed the average cost of annual cover for UK motorists stands at £713.

The third quarter rate drops stand in contrast to the increasing premiums seen earlier in the year, in which the months of February (0.4%), April (2.3%), May (0.3%) and June (1.9%) all saw cover costs climb.

However, despite the price increases seen in H1 2026, longer-term softening trends in the market still leave the cost of cover markedly down on historic highs, which peaked at approximately £995 per customer in December 2023 – some £282 higher than seen today.

Inner London remains the most expensive region for motor cover at approximately £1,079 per policy, followed by Northern Ireland (£1,059) and outer London (£888). Llandrindod in Wales has the lowest cost of cover, at just £474 per year.

Stable pricing environment

Tim Rourke, EMEA P&C leader for insurance consulting and technology at WTW, said: “Drivers have benefited from a more stable pricing environment in 2026, but the underlying cost of settling motor claims remains under pressure.

“Increasing repair complexity, rising repair costs and ongoing inflation uncertainty continue to create challenges for insurers to navigate.”

Steve Dukes, chief executive at Confused.com, added: “Car insurance prices are more stable now than they have been in recent years. At the same time, we know many customers are also seeing their renewal price increase, which can lead to more customers shopping around.

“And this is a clear opportunity for insurers to be competitive when it comes to new business pricing. Insurers that are using data and customer insight to create genuine choice and value for consumers will grow in this market.”