Drivers across Wales are starting to see their car insurance premiums increase, with the average policy now costing £552, according to new data.
The latest car insurance price index from Confused.com, powered by WTW, found premiums in Wales have risen by £19, or 4%, over the past three months. Despite the recent increase, drivers are still paying an average of £24 less than they were a year ago.
South Wales has seen the biggest rise, with average premiums increasing by £23 (4%) over the past three months to £570. However, this remains £28 (5%) lower than 12 months ago.
Meanwhile, drivers in Central and North Wales are now paying an average of £511, an increase of £9 (2%) since the previous quarter, but still £13 (3%) less than a year ago.
The figures are based on more than six million insurance quotes, making it one of the UK’s largest car insurance price indexes.
Among Welsh locations, Llandrindod Wells recorded the biggest quarterly increase, with premiums rising by £33 (8%) to an average of £471. Swansea also saw a notable increase, with prices climbing by £27 (5%) to £525.
Across Wales, average premiums now stand at:
- Cardiff: £598, up £23 (4%) in three months but down £37 (6%) year on year
- Newport: £579, up £19 (3%) in three months but down £27 (5%) year on year
- Swansea: £525, up £27 (5%) in three months but down £18 (3%) year on year
- Llandudno: £523, up £3 (1%) in three months but down £14 (3%) year on year
- Shrewsbury: £498, up £14 (3%) in three months but down £13 (3%) year on year
- Llandrindod Wells: £471, up £33 (8%) in three months but down £10 (2%) year on year
According to Confused.com, while insurers have continued reducing prices overall since the start of 2023, that trend now appears to be slowing.
One of the main reasons is the rising cost of insurance claims. Customer data shows the average value of a paid out claim in the UK has increased by 42% between 2020 and 2025, rising from £3,842 to £5,464.
Although the total number of claims has fallen by 59% over the same period, the cost of repairing or replacing vehicles has risen sharply. Damage claims have more than doubled in value, increasing by 105%, while fire claims have risen by 99% and theft claims by 64%.
The research also found that almost half (49%) of UK drivers who received their renewal in the past three months were quoted a higher premium than last year, with an average increase of around £70.
However, many motorists still found savings by switching insurers. Of those whose renewal increased, 46% shopped around and saved an average of £82. Even among drivers who received a cheaper renewal quote, 17% still switched providers and saved an average of £79.
The research suggests timing can also make a significant difference. According to Confused.com, obtaining a quote around 28 days before renewal could be up to 53% cheaper than waiting until the renewal date itself.
Matt Crole-Rees, motoring expert at Confused.com car insurance, comments, “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.”
