The UK Car Insurance Renewal Price Report 2026
How car insurance renewal prices, market conditions and review timing affect what drivers pay before the next policy year begins.
Renewal and timing signals
Timing window
Quote timing impact
25 days earlier
MSE analysis of almost one million quotes found an average policy cost £723 on renewal day and £377 when bought 25 days earlier.
Source: MoneySavingExpert, 2025–2026
FCA rule
Renewal protections
Renewal protections
FCA rules mean renewing home and motor customers should not be quoted more than an equivalent new customer through the same sales channel, but renewal prices can still change.
Source: FCA PS21/11
Market context
2025 average annual cost
Average motor premium
£564
The ABI says the average annual cost of motor cover in 2025 was £564, down £58 on 2024.
Source: ABI, 2025
Q4 2025 average cost
Quarter 4 average
£559
The ABI says the average cost of cover in Q4 2025 was £559, down £63 year on year.
Source: ABI, Q4 2025
Claims paid in 2025
Total motor claims
£11.9bn
The ABI says insurers paid out £11.9 billion in motor claims across 2025, showing how much pressure remains in the market.
Source: ABI, 2025
What changed in the car insurance market
For years, one of the biggest complaints about renewal pricing was that loyal customers could end up paying more simply because they stayed put. The FCA changed its rules so renewing home and motor customers should not be quoted more than an equivalent new customer through the same sales channel. It also made it easier for customers to stop automatic renewals if they want to.
That reform matters, but it does not mean every renewal quote is now a good deal. Renewal prices can still differ from the previous year because your risk can change and because the wider market can change too.
So the right conclusion is not that renewal is fixed now. It is simpler than that: you still need to check.
Why car insurance renewal still needs reviewing
Car insurance is a classic timing problem. The policy usually runs for 12 months. Around a month before the end date, the insurer sends a renewal notice showing the price for the next year. If nothing changes, the policy usually continues.
This is exactly the point where people get caught. The intention to review is often there. Then work, family or general admin gets in the way. The date passes, and the higher price becomes the default.
The FCA has said firms were previously raising prices for renewing customers year after year, often without their knowledge, and that some used poor cancellation processes that made automatic renewal harder to stop than it should have been. Even with remedies in place, that does not remove the need to review before the date.
What drivers should check before renewal
Compare the renewal quote to last year's premium
Start with the simplest question: how far has the price moved since last year?
Check the quote before the renewal date, not on it
The value is often in protecting the review window before the policy rolls over.
Do not assume a lower renewal quote is automatically competitive
The FCA rules reduced one form of unfair pricing, but they do not guarantee the renewal quote is the best available option.
Review the policy details, not just the premium
If cover, excess, extras or named drivers have changed, price alone can mislead.
Decide before the policy rolls over
Once the date passes, inertia usually wins.
Related pages
Car insurance renewal reminders
How Onremind protects you before the car insurance renewal date.
When should you compare car insurance before renewal?
Practical guidance on what to check before renewal.
FCA review of retail insurance: what it means before renewal
Latest developments relevant to car insurance renewal.
All insurance renewal reminders
See all insurance categories protected by Onremind.
Sources
- Financial Conduct Authority, PS21/11: general insurance pricing practices amendments
- Financial Conduct Authority, Evaluation Paper 25/2: general insurance pricing practices remedies
- Association of British Insurers, motor claims and premium data for Q4 2025 / full year 2025
- MoneySavingExpert car insurance quote timing analysis, 2025–2026