Why has my car insurance renewal price gone up?

Your car insurance renewal price explained

All insurers have seen a big increase in the cost of customer claims, that have been affected by inflation and world events. We're doing as much as we can to manage any increases, although we need to make sure that we’re still offering a great service for our customers.

Why is my price higher than last years?

Lots of factors can affect your price, for example you might have changed your car and this means an increase to your premium. Although there are also some factors that we can’t control, such as world events, that are impacting your price right now.

The cost of claims is rising due to labour, materials and repairs, so this means you’re likely to see an increase in your insurance price – even if you haven’t claimed.

As the number of claims goes up too, it’s now taking longer to resolve claims than before, which is also having a knock-on effect on the cost of claims as well.

Here’s some causes for prices rising:

Availability of parts

Due to car parts being more difficult to find, people need courtesy cars for longer, which means that costs for them have risen by 47%1.

Increased payouts

Between Jan & Mar 2023, insurers have paid out £2.41 billion in claims, which is 14%1 more than the same period last year. This includes claims like whiplash and personal injury.


Repairs costs jumped 32%1 in 2023, largely driven by increases in the cost of labour and materials.

Car tech

Cars are more sophisticated now, so the cost to fix them is increasing. Most notably with electric cars, which cost approximately 25%1 more to repair and take 14%1 longer to fix.


Payouts for vehicle thefts rose 35%1 from Oct  Dec 2023, compared to the previous year.

1 All stats are from the Association of British Insurers (ABI), who collate data for the whole insurance industry.

What if I make changes while my policy is active?

If you update or change your details during your policy period, the price of your premiums could change. For example, if you buy a new, more expensive car, you may have to pay more to insure it. 

Make sure your policy details are up to date and correct. If you don’t, this could invalidate your policy. The quickest, easiest way to make changes to your insurance policy is in your online AXA Account. You have 24/7 access, so you can make changes any time. You'll also save £25, as there’s no admin fee for making changes online.

For more details about making changes to your AXA Car Insurance policy, visit our handy FAQ page.

Frequently asked questions

I haven't made a claim, so why has my price gone up?

As the cost and number of car insurance claims increases, the pot combined with yours and other policyholders' premiums needs to go even further. So, even if you haven’t made a claim yourself, you’re more likely to see an increase in your price to cover this.

For example, major incidents involving serious injuries can cost millions of pounds, and what you pay for your insurance wouldn’t cover the full cost of this claim. There still needs to be enough money in the pot for future claims too, so if you do need to make a claim you know you’ll get a great service from us.

On average around 60% of your insurance premium goes towards claim payouts. You get a full breakdown of how your premium is split on our premiums explained page.

Would I get a cheaper price as a new customer?

You may have seen that the FCA changed some of their rules in 2022. This means that existing customers now get the same (or sometimes a cheaper) price than a new customer, as long as they get a quote on the same day, using the same details.

To find out more about this, head to our pricing and renewals page.

How can I reduce the cost of my insurance?

Although you might be looking at ways to reduce the cost of your insurance, you need to make sure that you’re still covered for all your needs - as if the worst happens, and you need to make a claim, you’d want to know you’d be covered. But here are some things you can look at:

  • Review of your policy

    it’s good to look at your policy and check that all details are correct and up to date, as even the smallest of changes can affect your price
  • Add-ons

    check your optional extras to make sure these still suit your needs
  • Mileage

    review your mileage to ensure it accurately reflects your current driving patterns

Can I get financial support?

It’s important that you keep up to date with your payments, but we know sometimes things aren’t that simple. If you need to speak to us about your payments, please contact us so we can try to help.

There are also several online resources that can help you with your finances:

Citizens Advice

Money Helper

Money and Pensions Service

Government advice on benefits