UK Car Insurance Inflation Tracker (August 2025)
Motor insurance premiums continue to be a major cost for UK households. Our tracker visualises the trend and explains the key factors driving prices up.
Latest UK Motor Premium Data
Current Average Premium
£998
Year-on-Year Increase
6.2%
What's Driving Costs?
1. Expensive Repairs: Modern cars with sensors, cameras, and complex electronics are significantly more expensive to repair after an accident.
2. Parts & Labour Inflation: The cost of spare parts and skilled labour has risen sharply, increasing the average cost of a claim for insurers.
3. Increase in Car Theft: A rise in sophisticated vehicle theft, particularly keyless entry cars, has also contributed to higher claims.