Comprehensive car insurance premiums have dipped by 0.8% during the past three months leaving UK drivers paying £713 on average for cover. The data comes from the latest car insurance price index from Confused.com in association with WTW.

Premiums nudged up by 1.9% in June before dropping back by 1.6% in July and 1.1% in August. The index shows average premiums are down £282 from their peak of £995 in December 2023.

During the latest quarter, drivers in Leeds and Sheffield enjoyed the biggest savings with premiums falling 3% from £798 to £778. In contrast, Northern Irish motorists saw premiums rise by 4& to hit £1,059.

Tim Rourke, EMEA property and casualty leader, insurance consulting and technology, said: “Drivers have benefited from a more stable pricing environment in 2026, but the underlying cost of settling motor claims remains under pressure. Increasing repair complexity, rising repair costs and ongoing inflation uncertainty continue to create challenges for insurers to navigate.”