Drivers in Wales are being urged to cash in on car insurance savings, ahead of an expected rise in other motoring costs later this year.

The average cost of car insurance in south Wales has fallen by £91 (-14%) in 12 months, to now sit at £578. Meanwhile in Central & North Wales, drivers are now paying £509, following a £52 (-9%) decrease in the past 12 months, 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 over 3 months, it’s the most comprehensive new policy car insurance price index in the UK.

In particular, drivers in Cardiff have seen greater savings than the regional average, of 15%. This equates to a £109 saving, with the average premium now £516 in the area. Despite this significant decrease, it’s still the most expensive area in Wales for car insurance.

In Central & North Wales, drivers in Llandudno have seen the greatest savings, of £56 (-10%). This puts the average premium in the area at £516 – which is still the most expensive in the region.

It’s a similar picture across the rest of the UK, where the average premium fell by £111 (-13%) to £726. This is the lowest prices have been in more than 2 years.

While car insurance prices have been dropping consistently for more than a year, prices are at the lowest point reported since March 2023. With many other motoring costs expected to rise this year, drivers are being urged to take advantage of lower insurance costs by shopping around when renewing their policies. And data shows that shopping around 28 days before renewal could save as much as 53%, on average(1).

This comes as many drivers face an increase in Vehicle Excise Duty (VED) from April, otherwise known as road tax, which is set to rise in line with the Retail Price Index (RPI) inflation(2). Similarly, EV drivers are no longer exempt from road taxes and will be paying the standard annual rate of £195(3).

Another price increase drivers could expect in 2026 is the amount paid in fuel duty(4). From September, the freeze on fuel duty, which is currently capped at 5p, is set to be reversed. This means fuel duty will rise each year with inflation, making it more expensive to fill up at the pump.

For those who frequently travel through the London congestion zone, prices will increase to £18 per day. And for this, EV drivers will no longer be exempt and could be paying 75% – 100% of the charge per day(5).

These increases could result in hundreds of pounds worth of extra charges for many drivers next year – while car insurance proves to be bucking the trend and saving drivers money when they shop around.

However, further research shows that while car insurance prices are dropping, many aren’t seeing these savings reflected in their renewal price. A survey of 2,000 UK drivers(6) found that more than 2 in 5 (42%) saw their renewal price increase by £72, on average, compared to the previous year. Of these drivers, almost half (47%) shopped around and switched insurers, saving £87, on average. In comparison, only 29% had a cheaper renewal of £59, on average. However, more than a quarter (26%) decided to shop around, saving a further £63, on average.

It’s clear that shopping around is the key to saving money on car insurance. Although, worryingly, many drivers could be missing out on even better savings. According to the research, 71% of UK drivers shop around for car insurance up to 25 days before their policy is due for renewal. 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. (1).

Shopping around early isn’t the only way drivers could save money on their car insurance. Experts at Confused.com offer more tips to help drivers cut costs even further:

• Check your mileage: telling your insurer you only drive 5,000 miles a year to get a cheaper price is not only risky, but could cost you more. On average, drivers who cover around 5,000 miles a year pay £776 for their car insurance. In comparison, those who drive 11,000 miles a year pay £603, on average.
• Driving more miles per year implies a driver has more experience on the road, which could be perceived as a lower risk of making a claim. Whereas low mileage can sometimes imply a lack of regular driving experience, and a higher risk of making a claim. Not only this, but if you try to make a claim on your insurance and you’re over your mileage, your policy could be invalidated.
• Share the driving: If you live with a partner, parent or child who could benefit from using your car from time to time, add them to the insurance. Data shows that those who are the sole driver on a car pay £821 for their insurance, vs. £704 paid for those who have an additional named driver. But don’t lie, if you’re not sharing the car, don’t declare it.
• Enhance your security: Simply put, the harder your car is to steal, the less of a risk it is. And this could mean you get cheaper car insurance. While most cars come with immobiliser and alarm as standard, adding things like a wheel lock or tracking device could save you money. Also consider where your car is parked, especially at night. Opt for a well-lit area if you can. Driveways and residential parking areas generally seem to be considered a lower risk. While those who park in a road away from their home pay as much as 70% more, on average(7).

Rhydian Jones, motoring expert at Confused.com car insurance, commented: “Car insurance is a considerable expense for many of us. But prices are cheaper now than they have been in recent years. And this is welcome news, given that many motoring costs are set to rise in 2026 – adding hundreds of pounds to our motoring bills.

“After insurance, fuel is another major cost for drivers, and if the fuel duty freeze ends this year, drivers will feel it in their pockets. Especially those who spend a lot of time on the road. And VED charges could increase for many too.

“While some may only see minimal changes, EV drivers in particular will be paying close to £200 more per year than they have previously.

“With this in mind, it’s more important than ever for drivers to save money where they can. Car insurance is a cost we can’t avoid, but there are ways to reduce it, such as improving vehicle security or adding a more experienced named driver to your policy.

“Ultimately, shopping around at renewal and finding the best price for you is the only way to know you’re getting the best price. And the sooner you do it after receiving your renewal notice, the bigger that saving could be.

For more tips on how to save on car insurance, visit: www.confused.com/compare-car-insurance/tips-for-cheaper-car-insurance