Car insurance premiums rise, but young drivers avoid surge

Reviewed by: Greg Wilson
Founder & Insurance Expert

Written by: Katie Gawley
Insurance Content Writer

Fact-checked by: Quotezone Editorial Team

This content follows our Editorial Guidelines

Last Updated: July 2026
Read time: 3 min

According to the most recent quarterly statistics, average car insurance premiums in the UK have risen by nearly £40 in the past three months – but surprisingly, it’s not affecting the youngest drivers.

Based on the latest data from car insurance experts at Quotezone.co.uk, the average annual premium increased from £579 in the first quarter of 2026 to £619 in Q2 – a rise of £39.49 (6.8%).

Across all age groups, young drivers aged 17–24 face the highest annual premiums, with average costs of £1,099.

However, despite the overall rise in insurance costs, premiums for this age group have remained virtually unchanged since Q1.

Instead, premiums increased for all the other age groups.  

While premiums for young drivers remained stable overall, one notable exception was 17-year-olds in London.

Their average premium jumped to £2,928 from £2,555, meaning newly qualified young drivers in the capital are now facing insurance costs of nearly £3,000 a year.

In contrast, 17-year-old drivers in Wales pay the lowest average premiums in the UK at £1,708 – over £1,220 less than those faced by newly qualified motorists in London.

Every UK region recorded a rise over the quarter, with Yorkshire seeing the steepest increase (6.7%), closely followed by Northern Ireland (6.4%), while the South West experienced the smallest rise of just 2%.

London remains the UK’s most expensive region for car insurance, with drivers paying just over £830 a year on average – around £353 more than motorists in the South West, which continues to be the cheapest region.

Greg Wilson, CEO and car insurance expert at Quotezone.co.uk, said: “The increase marks a reversal of the downward trend seen over the past few years, during which average premiums had fallen steadily since the peak at the end of 2023.

“It’s disappointing to see price increases after a prolonged period of steady decline, especially when motorists have been faced with rising fuel prices over the last few months.

“It’s thought a rise in claims costs are to blame, alongside growing technology making repairs and new parts more expensive.  

“It’s particularly interesting that all age groups have increased in price except young drivers. It could be the rise in telematics products have made premiums a lot more affordable for this notoriously expensive age group – allowing new and less experienced drivers to demonstrate safe and reliable driving.

“While many of the factors influencing insurance prices are outside a driver’s control, there are still ways to reduce costs. Shopping around before renewal, avoiding automatic renewals, considering whether annual mileage is accurate and paying annually where possible, can all help motorists find crucial savings.”

As a price comparison site, Quotezone helps young drivers compare and find savings on their insurance – helping over 4 million customers every year. 

References:

Car insurance index, with full UK data per age and per region available here – https://www.quotezone.co.uk/car-insurance/average-car-insurance-premium-by-region

Photo credit – iStock.com champpixs

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.