Drivers in Wales could soon see their car insurance cost start to increase as new data shows prices have started to rise in recent months.
The average cost of car insurance in the region is now £552, which is £19 – 4% – more expensive than just three months ago.
However, in some areas of Wales, these price increases are even greater. Premiums in South Wales have increased by £23 (4%) in the past three months, to £570, on average. This is, however, still £28 (-5%) cheaper compared to 12 months ago.
Meanwhile in Central & North Wales, premiums are now £9 (2%) more expensive compared to 3 months ago, at £511, on average. Though the annual decrease in this region is lower, at £13 (-3%) less year-on-year, on average.
That's according to the latest car insurance price index by Confused.com, powered by WTW. Based on more than 6 million quotes, it's the most comprehensive car insurance price index for new premiums in the UK.
In Llandrindod Wells, in particular, prices are now £33 (8%) more expensive than three months ago. This means drivers in the area are now paying £471 for their car insurance, on average. This is, however, still a £10 (-2%) decrease compared to 12 months ago, on average.
Similarly, in Swansea, prices are now £27 (5%) higher compared to 3 months ago, on average. This brings the average premium in the area to £525 – a £18 (-3%) drop year-on-year, on average.
Average premiums in Wales
| Area | Average premium | Annual change | 3-month change |
|---|---|---|---|
| Cardiff | £598 | -£37 / -6% | £23 / 4% |
| Newport | £579 | -£27 / -5% | £19 / 3% |
| Swansea | £525 | -£18 / -3% | £27 / 5% |
| Llandudno | £523 | -£14 / -3% | £3 / 1% |
| Shrewsbury | £498 | -£13 / -3% | £14 / 3% |
| Llandrindod Wells | £471 | -£10 / -2% | £33 / 8% |
Most drivers in the region will still see a lower price when shopping around for their car insurance. That's as the average premium in Wales has dropped by £24 (-4%) in the past 12 months, on average.
While insurers are still lowering prices for most drivers, this trend is starting to stall.
According to the Confused.com car insurance price index, car insurance prices across the UK have been consistently decreasing each quarter since the start of 2023. This followed a period of steep increases as insurers adjusted their pricing to reflect the economic fallout of COVID.
Further data from Confused.com finds that the cost of claims made by customers – a key consideration when it comes to how much drivers will pay – has in fact been increasing in recent years. And this could be causing insurers to adjust their prices to reflect the risk of having to pay out more.
According to the data, the average price per paid-out claim in the UK has risen by 42% between 2020 and 2025 – from £3,842 to £5,464. Despite this, the number of claims being made over the same period has in fact dropped by 59%. This suggests that while fewer incidents are being reported, when they are, they're considerably more expensive to rectify.
Change in average claim costs between 2020 and 2025
| Claim type | 2020 cost | 2025 cost | % change |
|---|---|---|---|
| Accident | £3,748 | £5,247 | 40% |
| Fire | £6,440 | £12,799 | 99% |
| Damage | £2,439 | £4,990 | 105% |
| Storm & flood | £6,705 | £8,003 | 19% |
| Theft | £11,067 | £18,123 | 64% |
| Windscreen | £243 | £350 | 44% |
Across all claim types, the average price per claim has increased significantly. And this could largely be down to the fact that cars today are considerably more expensive to repair or replace. In cases where repairs are needed, it's not just the cost of the parts that is taken into consideration. Labour costs can be a lot more now than they have previously been – especially where newer cars are involved. This is because a lot of newer cars are equipped with technology that may need recalibrating after a repair, which increases the overall cost. Equally, if a car is written off or stolen, the cost to replace that car could be considerably more. And as these costs continue to rise for insurers, it's likely they will be reflected in car insurance premiums as a result.
However, if drivers are still seeing a lower price at their renewal, they shouldn't stop shopping around, as further research shows that savings can still be made. A survey of 2,000 UK drivers found that almost half (49%) of those who received their renewal in the past 3 months saw a more expensive price compared to the previous year, of around £70 on average. However, of these, almost half (46%) went on to shop around and switch insurers, saving £82, on average.
Equally, more than 1 in 5 (22%) actually received a cheaper renewal, on average. But almost one in five (17%) still decided to shop and switch, saving £79, on average. This proves that even when car insurance prices are increasing, savings could still be made.
According to the research, drivers typically shop around 19 days before their renewal is due and hold off buying until 10 days before, on average.
But new data finds that running a quote 28 days before your renewal is due could be the key to getting the best price. Confused.com car insurance data shows that buying car insurance around 28 days before renewal could be 53% cheaper than buying on the renewal day.
Matt Crole-Rees, motoring expert at Confused.com car insurance, 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.
“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.
“Shopping around when it comes to renewal is key to knowing you're getting the best price. But not leaving it to the last minute could mean you save even more. That's as our data shows that getting a quote 28 days before your renewal is due could save you as much as 53% on your price. So being organised and getting it sorted early can pay off.”
