Drivers who keep their vehicles in garages overnight are being hit with steeper car insurance premiums, fresh research has found.
The average annual premium last year for those with garage storage came in at £647, against £623 for motorists parking elsewhere, according to figures from price comparison site Go.Compare.
The divide grew even wider for third-party-only cover – with garage owners shelling out an average of £790, some £54 more than those leaving their cars in other spots (£736).
The study also revealed a 3% drop in policies for drivers storing their vehicles in locked garages overnight between 2023 and last year.
This shift seems connected to garages being transformed into extra living areas – nearly a fifth of homeowners with garages (17%) admitted converting them within the past five years, with home gyms and offices ranking among the most common makeovers.
Tom Banks, car insurance 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 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.” While it does mean greater expense, storing a vehicle in a garage will lower the risk of theft and potentially having to submit a claim, which would push up premium costs anyway, Banks explained.
The average motor premium during the opening quarter of this year stood at £560, just £1 higher than the final three months of 2025, according to the Association of British Insurers (ABI).
The £560 average sum paid for motor cover is also £20 lower than during the first quarter of 2025, the ABI said.
It revealed that of the £2.9 billion insurers settled 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 rose to £3,699, up by 8% compared with the preceding quarter.
The ABI said that elevated parts prices and growing vehicle complexity have driven up repair costs.
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Extended repair times, including those connected to supply chain disruption, have also added to repair costs, with lengthier repair periods sometimes impacting expenses such as vehicle hire, the association said. Chris Bose, director of general insurance and international at the ABI, said: “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.”