Parking inside the garage actually leads to higher insurance premiums (Image: Getty)
Motorists storing their vehicles in garages overnight are facing higher car insurance costs, according to new research.
The typical annual premium last year for those using a garage stood at £647, compared with £623 for drivers parking elsewhere, data from price comparison site Go.Compare reveals.
The gap widened further for third-party-only cover – with garage users paying an average of £790, which was £54 more than those parking in alternative locations (£736).
The research also uncovered a 3% decline in policies for motorists keeping their cars in locked garages overnight between 2023 and last year.
This trend appears linked to garages being repurposed as additional living space – almost a fifth of homeowners with garages (17%) reported converting them over the past five years, with home gyms and offices among the most popular transformations.
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 spending more, using a garage for parking will reduce the likelihood of theft and potentially having to file a claim, which would push up premium costs regardless, Banks explained.
The average motor premium in the first quarter of this year was £560, which was just £1 more than the last three months of 2025, according to the Association of British Insurers (ABI).
The £560 average amount paid for motor cover is also £20 less than in the first quarter of 2025, the ABI said.
It said that of the £2.9 billion insurers paid out in claims in the first quarter of this year, £1.9 billion was for vehicle repairs, marking a 3% increase compared with the fourth quarter of 2025.
The average accidental damage claim increased to £3,699, up by 8% compared with the previous quarter.
The ABI said that higher parts prices and increasing vehicle complexity have pushed up repair costs.
Rising repair times, including those linked to supply chain disruption, have also contributed to repair costs, with longer repair periods sometimes affecting costs 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.”
