Average car insurance premiums hold steady at £562

[Holly82]

Car insurance costs have levelled off after a turbulent few years. Which? reports that ABI figures for the third quarter of 2026 put the average premium at £562, down £4 on the previous quarter and up 2 percent on a year earlier

That is still well below the £607 average seen in the third quarter of 2024. Insurers paid out £3.2 billion in claims during the quarter

The average claim was £4,900, up 1 percent, while windscreen claims rose 5 percent to £298. Repair costs remain high because modern cars contain so much technology

Which? suggests paying annually, renewing a few weeks early, keeping your mileage accurate, checking how your job is described, and haggling with your insurer. It also recommends checking Direct Line and NFU Mutual directly, because they do not appear on comparison sites

Stable premiums are a relief after the big jumps of 2023 and 2024. Small changes like renewing early or adjusting your job title can make a real difference. Never just accepting the renewal price is still the best advice

Has your car insurance gone up or down this year? And what is your best tip for cutting the cost?

What's happening to car insurance premiums? - Which?www.which.co.uk