Go.Compare research shows UK motorists who park in a garage overnight pay more than those parking elsewhere – and the reason is all about modern cars
Drivers who keep their vehicles in garages overnight are being hit with steeper car insurance premiums, according to fresh findings.
Research from price comparison website Go.Compare shows that the typical annual premium for garage users last year reached £647, while those parking elsewhere paid £623.
The disparity became even more pronounced for third-party-only policies – garage owners faced an average cost of £790, a substantial £54 more than motorists using alternative parking spots (£736).
The study also revealed a 3% drop in policies for drivers storing their cars in locked garages overnight between 2023 and last year.
This shift seems to be connected to garages being transformed into extra living areas – nearly one in five homeowners with garages (17%) said they had converted them within the last five years, with home gyms and offices ranking amongst the most common conversions.
Tom Banks, car insurance spokesperson at Go.Compare, said: “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 possible reason for this is likely related to cars increasing in size over recent 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.” However, Banks explained that despite the added expense, parking in a garage reduces the risk of theft and the likelihood of filing a claim, which would ultimately push up premium costs anyway.
According to the Association of British Insurers (ABI), the average motor premium in the first quarter of this year stood at £560, just £1 more than in the final three months of 2025.
The ABI also noted that the £560 average paid for motor cover represents a £20 reduction compared with the first quarter of 2025.
Of the £2.9 billion paid out by insurers in claims during the first quarter of this year, £1.9 billion went towards vehicle repairs, representing a 3% rise compared with the fourth quarter of 2025.
The average accidental damage claim climbed to £3,699, an 8% jump on the previous quarter.
The ABI attributed the surge in repair costs to higher parts prices and the growing complexity of modern vehicles.
Lengthening repair times, partly driven by supply chain disruption, have also pushed up costs, with extended repair periods sometimes impacting additional expenses such as vehicle hire, the association added. Chris Bose, director of general insurance and international at the ABI, commented: “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.”
