Your car insurance renewal explained

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.

What are some reasons for rising car insurance costs?

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  • 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.
99.58% of direct motor claims paid Feb 2024 - Jan 2025

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

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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?

Here's a video created by the Association of British insurers to help you understand what your premium pays 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.

 

Renew now

 

Got a question? We might have answered it here...

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

defaqto

Given the prestigious Defaqto 5 Star rating for our car insurance

Which?

Which? Recommend Provider for car insurance