Average Car Insurance Cost in the UK

The average car insurance cost in 2025 is £651.25

How much is car insurance in the UK?

What month your car insurance renewal is due will impact how much you pay. For example, people renewing in November of 2024 paid an average of £187.42 more than those just 2 months later in February 2025. 

The good news is that costs are gradually falling overall. This March, you could pay 21% less than you did at the same time last year. That’s a saving of £176.75 on your annual premium. 

When will car insurance prices come down?

After car insurance prices rose and eye watering 42% in 2023 many UK drivers understandably demanded to know why car insurance had gone up.

However, car insurance costs fell for the first time in a year as of Q1 of 2024. Although this was a decrease of just under £69, the trend has continued into 2025. 

In Q1 2025, prices have almost returned to their pre-spike level. This is great news for UK drivers who have been struggling with the increasing cost of car insurance.

Average car insurance premium by region

In 2025, the UK area with the highest car insurance cost is London. People here pay an average of £373 more than the national average of £651.

South West England has the cheapest average car insurance cost at £510. This is £141 cheaper than the current national average.

The region paying premiums that are the closest to the national average is the East Midlands. Here the average premium cost for car insurance is £651.

Car insurance cost statistics across the UK regions

Average cost trends for different age groups in the UK

Virtually everyone saw an increase in car insurance costs in 2023 and 2024. However, young drivers suffered disproportionate spikes that priced many out of driving completely.  

The average car insurance for drivers aged from 18 to 24 cost £3,055 in February 2024. This was an increase of 66% in just 2 months, whereas prices only increased 38% for 44-64 year olds in the same time.  

Older drivers over 65 got off the lightest, with car insurance costs only rising 11% during the worst of the increase. This age group also enjoy the lowest costs overall, with current averages at £457.Thats an average annual saving of £1,247 when compared to young drivers.

The monthly average cost of UK car insurance by region

The price of UK car insurance in November 2024 was up consistently across every UK region. However, this has since dropped, with costs staying fairly consistent across the past 2 quarters.

The area with the highest drop was the West Midlands, with a cost decrease of £222. One area where cost drops aren’t keeping up is Northern Ireland, where there was only a decrease of £105. This could be one to keep an eye on as the year progresses.

The average regional car insurance cost in the UK by age

Young drivers have the highest average premiums across every UK region. In London drivers aged 17-24 could expect to pay over 71% more than a motorist aged 45 to 64 in the same area. 

This trend is true even for the cheapest areas for car insurance in the UK. Young drivers in Scotland pay an average of £1,279 more than 45-64 year olds.

Our data source

Our team of insurance comparison experts at Quotezone have done the research to give you the latest data on car insurance prices in 2025.

These statistics come from an unbiased random sample of over 100,000 quotes from real UK customers using our comparison system.

Our car insurance price index gives the average cost of UK-wide car insurance premiums separated by age group and month to allow consistent comparisons of data over time.

Find out what you could pay with real UK car insurance cost data and our car insurance price calculator.

References
*Quotezone.co.uk – All data shown uses a random sample of over 100,000 UK car insurance policies from January 2023 – September 2024, across all age groups.

Want more info on this price index?

If you need to get in touch with our press team to discuss this price index or any historical data, please email at press@quotezone.co.uk.

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