British motorists who store their vehicles in garages are being warned of a hidden £24 surcharge on their car insurance premiums, according to new research. Despite the apparent security benefits, keeping a car in a garage now costs drivers an average annual premium of £647, compared to £623 for those who park elsewhere.
Insurance Premium Discrepancy
Analysis by Go.Compare Car Insurance examined sales data and uncovered the largest disparity among drivers with third-party-only cover. On average, such policies cost £790 for those who leave their car in a locked garage overnight, while those who park elsewhere pay £736—a difference of £54.
Interestingly, the study also found that fewer motorists are using garages for car storage. There has been a 3% decline from 2023 to 2025 in car insurance policies for drivers who park in a locked garage overnight.
Garage Conversion Trend
Many homeowners are repurposing their garages into additional living spaces. Nearly a fifth (17%) of people living in a property with a garage say they have converted it in the last five years. Popular conversions include home gyms, utility rooms, and home offices.
The most common overnight parking spot remains the driveway at home, used by nearly two-thirds of motorists. About a fifth leave their vehicle on the road outside their property.
Reasons Behind Higher Premiums
Tom Banks, car insurance spokesperson at Go.Compare, said: "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, according to Banks, is the increasing size of modern cars. "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."
Expert Advice
Despite the potential for higher premiums, Banks advises drivers to prioritise security when choosing where to park overnight. "While parking in a garage could lead to more expensive premiums, we'd still suggest that drivers prioritise their vehicle's security when choosing where to leave their car overnight. This will minimise the risk of theft and, in turn, the possibility of you having to claim."
He added: "Whereas leaving it in a less secure location could increase this risk. If you have to claim, your premiums will likely go up as a result, meaning you could cancel out any savings you made by parking elsewhere in the first place."
"Ultimately, you should pick your parking spot based on where it's least likely to be damaged or stolen. If that means leaving it in the garage, even if it results in a slight rise in your premiums, it could be the better option in the long run."
