Car Insurance Prices Hit Historic Highs Again

The cost of car insurance is on the rise once more. During the first quarter of 2025, the average cost of car insurance policies increased by 14% compared to the fourth quarter of 2024 and by 2.84% compared to the first quarter of the previous year, which had already set a historic record.

For the first time, the average premium surpassed the psychological barrier of 1,000 euros last March, with comprehensive coverage (+19.63%) experiencing the most significant price increase.

By type, comprehensive coverage without a deductible has once again led the rise, with a 19.63% quarterly increase, while the annual increase is more moderate at 2.84%.

However, the portal explains that these figures need to be put into context, as the first quarter of last year reached historic highs that were subsequently reduced month by month.

Meanwhile, third-party insurance also saw a significant increase, with a rise of 12.58%.

In this context, Kelisto points out that last March "broke the psychological barrier" of 1,000 euros, setting the average cost of car insurance at 1,030.16 euros, with the most basic insurance (third-party) also surpassing the 500-euro mark, reaching an average premium of 516.01 euros per year.

Javier Martínez, the insurance spokesperson for Kelisto.es, noted that the cost of car insurance policies "had been slowly decreasing throughout 2024."

"A slight increase was expected at the beginning of 2025, as the start of the year is always used by insurance companies to adjust costs, and the first quarter of the year usually sees price increases," Martínez explained, acknowledging that the "severity of this new increase, which breaks the records set last year and jeopardizes the sector's expected stabilization in the coming months," was surprising.

As a result of this increase, Spaniards spent an additional 27 euros per year on car insurance in the first quarter of 2025, which, considering that 79% of households in the country have such a policy, represents an additional cost of 395 million euros for all drivers.