If you're an existing LV= Car or Home customer, you can be sure you'll always pay the same or less than one of our new customers when you renew.
Your quote will be compared to a new customer price on the same day your renewal was generated, based on the exact same cover.
Why do car insurance prices change?
A rise in the cost to resolve claims has a direct impact on people’s insurance prices. Cars are costing more to repair or replace and premiums have had to go up as a result. Our average claim cost is now 22% higher than in 2022.
What if I haven’t made a claim?
When we calculate a price for a policy, we have to factor in what our overall claims cost will be to make sure there’s enough money in the pot for everyone’s claim.
Just like other businesses, the increased cost of things affects us and it can also affect our pricing. That’s why, even if you haven't made a claim, your premium could go up.
Did you know? Motor insurers paid out a record £11.7 billion in car insurance claims in 2024, as increases in theft and repair costs continued to impact premiums, according to the latest data from the Association of British Insurers. (Source: ABI)
We continue to assess the value of our cover, and an increase in premiums is not something we take lightly. It’s really important to us that we continue to put you first and give you the same great service you’ve come to expect.
What are some reasons for rising car insurance costs?
- The cost of repairs: vehicles with sensors, cameras and high voltage systems are raising the cost of replacement parts and require specialist labour.
- Energy costs: some garages faced a 300% rise in their energy costs during 2023. (Source: ABI)
- Record high vehicle theft and cost of average theft claim: The average claim for theft of and from a vehicle hit £11.2k in Q4 2024.(Source: ABI)
- Courtesy cars: the cost of courtesy cars - an important part of our service - jumped 35% in 2022, representing another annual record increase. (Source: ABI)
How do car repair costs affect my renewal price?
If car parts or repairs get more expensive, so can car insurance. Our infographic shows how much certain repairs cost in 2020 compared to 2024.
Take something as seemingly simple as a new headlamp. In 2020 it would have cost around £500 to fix on average. Headlamps aren’t cheap, and by 2024 that average repair cost had gone up nearly £240.

Repair costs 2020 vs 2024.
We pay out on over 99% of motor claims.
What are we doing to keep costs down?
We know it’s hard to keep up with the cost of living at the moment and these challenges affect everyone
At LV= we’re doing everything we can to tackle these challenges...
- Maintaining quality while driving down repair costs: We’re increasing the number of our body shops and garages, exclusively for LV= customers. With pre-agreed prices for repairs and quicker decision making, we ensure the highest standards while controlling costs.
- Expanding our team to get you back on the road: Engineers and specialist engineers for Electric Vehicles are in short supply and many are retiring. We're investing in apprenticeships to grow our engineering team, so we can be there when you need us most.
- Tackling repair delays so you get what you need: We’re working with our suppliers to combat the issue affecting everyone caused by a global shortage of important materials and high-tech car parts, like semi-conductor chips.
Take a look at our LV= car insurance customer reviews
Thanks to all our customers who have rated us ‘Excellent’ on Trustpilot!
What can car insurance claims pay for?
Please check your individual cover as policies can differ.
So, why renew with LV=?
We're proud to be recognised as a Which? Recommended provider for car insurance for 11 years running and how our award-winning customer service sets us apart.
Our friendly call centres are here to help and our Defaqto 5 Star rated insurance reflects the outstanding quality of our cover. You can be confident we offer the highest level of protection for all events.
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We look after over 4.5 million people like you in the UK so you're in good company
Our customers have rated us as '4.5 Stars - Excellent' on Trustpilot