Drivers across the UK are seeing car insurance prices rise once again, with motorists forking out hundreds of pounds to keep their vehicles on the road.
New data shows that the average car insurance policy now costs £719, which is an £8 increase compared to three months ago.
The analysis shows that this is the first time prices have increased since the start of 2023, prompting a warning from experts that they could continue to increase in the future.
Prices have fallen by five per cent, or £38, over the last 12 months, on average, although the future may cost drivers more than they have paid for several years.
The drop in prices is "significantly smaller" than falling costs seen in previous years, with prices being 14 per cent lower 12 months ago compared to the previous year.
While insurance providers are still lowering prices for many drivers, Confused.com has warned that this trend is starting to stall.
Motorists could also soon see higher premiums when they look to renew their car insurance, in a further blow to Britons struggling with the cost of living crisis.
The comparison site warned that if prices continue to rise, drivers "will be paying more for their insurance than they have done before".
Experts are warning that car insurance prices could rise in the coming months
|GETTY
The average car insurance premium in 2026 is a staggering 38 per cent more expensive than five years ago.
Matt Crole-Rees, motoring expert at Confused.com, said: "Drivers have benefitted from car insurance price drops for some time now.
"But now we're seeing that prices are starting to increase slightly in recent months, which means motorists could soon see their price increase when it comes to their renewal."
The expert highlighted that drivers could see impressive savings when shopping around with different providers before renewing their car insurance.
LATEST DEVELOPMENTS
Car insurance prices have soared over the last five years
| GETTYData suggests that buying car insurance around 28 days before the renewal deadline could help drivers see prices drop by 53 per cent, when compared to buying on the renewal date.
Mr Crole-Rees emphasised that "being organised" can bring huge benefits for motorists trying to keep their costs down.
He added: "Car insurance prices are generally calculated based on risk and claims. And while there have been fewer reported claims in recent years, the increases we're starting to see are likely down to the fact that when a claim is made, it's more expensive for insurers to rectify.
"This isn't something drivers can control, but it doesn't mean to say they can't still save money on their insurance."
Insurance prices for theft have jumped by 64 per cent between 2020 and 2025
| PAChange in average claim costs between 2020 and 2025
Accident - 40 per cent rise from £3,748 to £5,247
Fire - 99 per cent rise from £6,440 to £12,799
Damage - 105 per cent rise from £2,439 to £4,990
Storm and flood - 19 per cent rise from £6,70 to £8,003
Theft - 64 per cent rise from £11,067 to £18,123
Windscreen - 44 per cent rise from £243 to £350