‘Safest’ place to leave car at night ‘worst for | Tech News
Parking inside the storage really leads to larger insurance coverage premiums (Image: Getty)
Motorists storing their automobiles in garages in a single day are dealing with larger car insurance coverage prices, in accordance to new analysis.
The typical annual premium final yr for these utilizing a storage stood at £647, in contrast with £623 for drivers parking elsewhere, knowledge from price comparability web site Go.Compare reveals.
The hole widened additional for third-party-only cowl – with storage customers paying an average of £790, which was £54 more than these parking in different areas (£736).
The analysis additionally uncovered a 3% decline in insurance policies for motorists preserving their vehicles in locked garages in a single day between 2023 and final yr.
This trend seems linked to garages being repurposed as extra residing space – nearly a fifth of householders with garages (17%) reported changing them over the previous 5 years, with home gyms and workplaces among the many hottest transformations.
Tom Banks, car insurance coverage spokesperson at Go.Compare, commented: “Car insurance is often cheaper for those who park in more secure locations, so it might be a surprise to see that those who park in a garage actually end up with higher costs on average.
“One potential cause for that is possible associated to vehicles rising in dimension over latest years.
“This steady growth has made it much harder to fit cars in garages, which could be leading to an increase in claims for scrapes and bumps while parking in a garage, driving up premiums as a result.” While it does imply spending more, utilizing a storage for parking will cut back the chance of theft and probably having to file a declare, which might push up premium prices regardless, Banks defined.
The average motor premium within the first quarter of this yr was £560, which was simply £1 more than the final three months of 2025, in accordance to the Association of British Insurers (ABI).
The £560 average quantity paid for motor cowl can also be £20 much less than within the first quarter of 2025, the ABI stated.
It stated that of the £2.9 billion insurers paid out in claims within the first quarter of this yr, £1.9 billion was for vehicle repairs, marking a 3% increase in contrast with the fourth quarter of 2025.
The average unintended harm declare elevated to £3,699, up by 8% in contrast with the earlier quarter.
The ABI stated that larger components costs and rising vehicle complexity have pushed up restore prices.
Rising restore instances, together with these linked to provide chain disruption, have additionally contributed to restore prices, with longer restore intervals generally affecting prices equivalent to vehicle rent, the affiliation stated.
Chris Bose, director of normal insurance coverage and worldwide at the ABI, stated: “It’s encouraging to see motor insurance premiums have remained stable in the first three months of this year, underlining the industry’s efforts to tackle costs.
“However, the sustained high costs of repairs continue to be a concern. Working with our members and Government, we’ll maintain momentum to drive forward the work of the Motor Insurance Taskforce to support motorists.”
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