After more than a year of falling car insurance premiums, new data suggests the market may be entering a period of renewed price increases.
Analysis from Consumer Intelligence found that average quoted car insurance premiums rose by 4.5% during the first quarter of 2026, marking the first quarterly increase after six consecutive quarters of declines. Overall, premiums are now 2.4% higher than they were a year ago, indicating a potential shift in market conditions.
Alongside rising prices, motorists are also seeing fewer opportunities to take advantage of discounts. Consumer Intelligence reports that the number of advertised discount offers available through comparison websites has fallen significantly in recent months. The reduction in promotional activity suggests insurers are becoming less reliant on price-led competition and are instead focusing on improving profitability after a prolonged period of intense market pressure.
The trend comes after insurers spent much of 2024 and 2025 competing aggressively for customers, helping to drive down premiums across many driver groups. However, with claims costs, repair expenses and wider operational pressures continuing to affect the sector, insurers appear to be reassessing their pricing strategies.
Not all motorists are being affected equally. Younger drivers continue to face some of the steepest premiums, with those under the age of 25 experiencing the largest annual increases. Meanwhile, drivers in older age groups have generally seen more modest changes, although costs are beginning to edge upwards across much of the market.
The retreat of advertised discounts may also make it harder for consumers to secure the savings they have become accustomed to in recent years. While comparison shopping remains one of the most effective ways to find competitive cover, drivers may need to spend more time reviewing policy features and insurer offerings rather than relying solely on headline discount promotions.
Consumer Intelligence's findings suggest that the car insurance market is entering a new phase, with insurers balancing customer acquisition against the need for sustainable underwriting performance. Whether premiums continue to rise throughout the remainder of 2026 remains to be seen, but the latest figures indicate that the period of consistently falling prices may have come to an end.
For motorists approaching renewal, the message is clear: start shopping around early, compare policies carefully and don't assume the same level of discounts will be available as in previous years.
