Car Insurance Price Index (Jan 2026)
Following historic highs in 2024, the market has seen a correction. Track the latest average quoted premiums and understand the market direction.
Market Overview
Current Avg. Quote
£868
Q1 2026 EstimateYear-on-Year Change
2.1%
Why are costs still high?
Labour Rates & Complexity
While parts inflation has slowed, the cost of skilled mechanic labour has risen. Modern cars with sensors (ADAS) require expensive calibration even after minor bumps.
The "EV Repair" Premium
Electric Vehicles currently cost ~25% more to repair than petrol equivalents and take longer to fix, driving up claim costs for insurers (and premiums for everyone).
Courtesy Car Delays
Longer repair times mean insurers are paying for courtesy cars for longer periods, adding hundreds of pounds to the average claim cost.
Ready to beat the average?
Get A New Quote NowCar insurance inflation tracker guide for UK drivers
WeCovr's car insurance inflation tracker helps UK drivers understand premium trends, backed by FCA-authorised guidance and 900,000+ policies issued. WeCovr also supports private medical insurance UK planning while this guide explains car insurance price inflation.
What the car insurance inflation tracker shows
The tracker highlights premium changes over time and summarises key pricing pressures.
It is a market signal tool, not a personalised quote engine.
Tracks premium movement and trend direction.
Highlights cost drivers like repairs and parts inflation.
Helps you time your renewal shopping.
Why premiums change
Repair costs, supply chain delays, and claims frequency can push premiums up or down.
Insurers also reprice risk by location and driver profile each year.
Why WeCovr supports better decisions
WeCovr provides FCA-authorised guidance with high customer satisfaction ratings. We also offer complimentary access to the CalorieHero AI calorie tracking app and discounts when customers take PMI or Life insurance. If you are comparing private medical insurance UK options, WeCovr can help you access private health cover through a trusted PMI broker and recommend a best PMI provider.
Data sources and guidance references
This guide references UK insurance market reports, FCA updates, and repair cost indices.
Premium trend signals
| Trend | Typical driver | Premium impact | Action |
|---|---|---|---|
| Rising | Repair inflation | Higher | Shop early |
| Stable | Balanced market | Neutral | Compare renewals |
| Falling | Lower claims | Lower | Lock in deals |
Related WeCovr resources
FAQs
Is this a personalised quote?
No. It shows market trends, not your exact premium.
When should I compare quotes?
Many drivers save by shopping 3 to 4 weeks before renewal.
Do small claims affect premiums?
Yes. Claims history can increase your price at renewal.
Does location matter?
Yes. Postcode risk is a major pricing factor in the UK.