Why UK Car Insurance Is Rising in 2025 — And How to Save

Car insurance has become noticeably more expensive across the UK, leaving drivers wondering why their premiums keep increasing even when nothing has changed about their driving. Below are the key factors behind the rise in costs for 2025, and what drivers can do to manage them.

✅ Higher repair costs and longer part delays

Global supply chain issues have increased the price of replacement parts and extended repair times. According to the Association of British Insurers (ABI, 2025), parts shortages and labour costs have driven average repair bills up significantly. Longer repair durations also increase courtesy-car expenses, which insurers pass on to drivers.

✅ Inflation in labour and energy costs

Vehicle repair centres have seen higher overheads, including energy prices and staffing costs. These increases contribute directly to more expensive repair claims, influencing overall premiums (ABI, 2025).

✅ More expensive technology in vehicles

Modern cars include advanced sensors, cameras, ADAS systems, and electric components. While these features improve safety, they are far more expensive to repair or calibrate (Thatcham Research, 2025). Even minor bumps can become costly claims.

✅ Rising personal injury claims

Personal injury payouts remain one of the most expensive parts of motor insurance claims in the UK. Efforts to reduce claims-related fraud continue, but costs remain high (Ministry of Justice, 2025). Insurers adjust premiums to compensate.

✅ Higher vehicle theft trends

Police data shows that theft of keyless-entry vehicles has increased in recent years (Home Office, 2025). Higher theft risk raises premiums, especially in urban postcodes.

✅ Younger drivers affected most

Newer drivers with limited history face higher perceived risk. Average premiums for 17–24-year-olds remain significantly above the national average (ABI, 2025).

What drivers can do to reduce costs in 2025

1. Improve driving behaviour

Safe braking, lower speeds, and gentle acceleration can influence risk perception. Some insurers offer telematics-based discounts (ABI, 2025).

2. Shop around before renewing

Research shows drivers who compare multiple insurers can save hundreds annually. Renewal letters are not always the cheapest option (FCA, 2025).

3. Keep your vehicle secure

Use steering locks, driveway posts, and signal-blocking pouches to reduce theft risk, especially for keyless entry vehicles (Home Office, 2025).

4. Maintain your vehicle

Well-maintained brakes, tyres, lights, and sensors reduce avoidable claims and indicate responsible ownership to insurers (DVSA, 2025).

5. Avoid unnecessary modifications

Changes that increase engine performance or aesthetics can raise premiums. Always declare modifications (DVLA, 2025).

🚗 How Motion Shield can help

Motion Shield’s DriverPlus membership empowers drivers to counter rising insurance costs through safer habits and smarter maintenance. The Driver Score highlights risky behaviours like harsh braking or speeding, helping drivers improve over time, while Driver Credit rewards quarterly safety checks with cashback on essentials such as tyres, servicing, and MOT. By building a stronger driving profile and maintaining a safer vehicle, drivers position themselves more favourably at renewal, potentially unlocking fairer pricing in the long run.