Car insurance has never been more expensive

Car insurance more expensive

The cost of car insurance continues to rise. Recent figures from comparison site Pricewise show that the average premium increased again in June 2025. This brings the increase of the past year to 18 percent, equaling the record of September 2024. Especially all-risk insurance has become much more expensive in recent months.

All-risk insurance most sharply up in price

Car insurance premiums are adjusted regularly. In practice, that increasingly means increases. In May of this year, premiums rose an average of 6 percent. Another 3 percent was added in June. All-risk insurance stood out with an increase of 14 percent in May and 8 percent in June.

The basic coverage, WA insurance, actually became slightly cheaper in June (-2.4 percent), but that did not compensate for the earlier increases. WA+ insurance rose 2.6 percent last month.

Reasons for the increase

According to Pricewise, there are several reasons why car insurance is so expensive these days. Inflation plays a role, but so does changing traffic. More and heavier vehicles are driving around. In accidents, this leads more often to serious injuries and higher damage claims. The Association of Insurers speaks of a worrying development: heavier vehicles bring greater risks for all road users.

In addition, repair costs are rising. New cars are full of sensors and electronics, which makes damage repair more complex and expensive. That also drives up premiums, especially with all-risk insurance that covers damage to one’s own car, even at one’s own fault.

Differences between coverages

Car insurance policies come in three varieties: WA, WA+ and all-risk. With WA, only damage to others is covered. WA+ offers extra coverage for damage caused by fire or theft, for example. With all-risk you are also insured for damage to your own car, regardless of who caused it. Not surprisingly, this coverage costs the most.

Claim-free years more important than ever

Especially those who have accumulated few claim-free years pay a high premium. Insurers give substantial discounts to people who drive for years without a claim. That discount can be as high as 80 percent. The number of claim-free years differs per coverage. For WA it is on average between 3 and 5 years. For WA+ the number is between 5 and 7 and for all-risk between 8 and 11. People with many years without claims pay a lot less, while starters or people with a history of claims pay a lot more.

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