Average Car Insurance Cost in the UK

The average car insurance cost in 2025 is £591.57

How much is car insurance in the UK?

The month that your car insurance renewal is due will impact how much you pay. For example, people renewing in May of 2025 were quoted an average of almost £100 more than those who renewed in August 2025. 

The good news is that costs are gradually falling overall. This September, you could pay 25% less than you did at the same time last year. That’s a saving of £197 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 was so expensive.

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. 

In 2025, prices are falling consistently after another drop in Q3. 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 £269 more than the national average of £592.

South West England has the cheapest average car insurance cost at £473. This is £118 cheaper than the current national average.

The region paying premiums that are the closest to the national average is Yorkshire. Here, the average premium cost for car insurance is £610.

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 premium for drivers aged from 18 to 24 was £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 £405. That’s an average annual saving of £693 when compared to young drivers.

The monthly average cost of UK car insurance by region

Car insurance costs are continuing to fall across all UK regions throughout 2025. This is great news for those with policies that renew towards the end of the year, as they can benefit from the lowest monthly premium averages since the 2023 spike.

Drivers in London can also celebrate, as average costs continue to stay below £1,000 following the dip in June of 2025.

Young driver insurance falls to a 10 year low in 2025

However, there is some good news for 17-24 year olds in 2025. Data shows that premiums for young drivers have dropped to their lowest in 10 years, with the most recent averages resting at £1,098.  

These new drivers are experiencing a slash in prices across the board, with costs in half of UK regions now below £1,000. 

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 pay £1,450 a year for car insurance. That’s 108% more than older drivers, who pay around £696.

This trend is true even for the areas that have cheaper car insurance costs. Young drivers in Scotland pay an average of £584 more than 45-64 year olds.

Last Updated: 29 Sept 2025
Read time: 7 minutes

Written by: Lauren McAfee
Insurance Writer and Editor

Reviewed by: Katie Gawley

Written in line with our Editorial Guidelines

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 2025, across all age groups.

Want more info on this price index?

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