Average Car Insurance Cost in the UK

The average car insurance cost in 2025 was £591.63

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 October of 2025 were quoted an average of £24 less than those who renewed in December 2025. 

The good news is that costs are gradually falling overall. In December 2025, you could pay 18% less than you did at the same time last year. That’s a saving of £133 on your annual premium. 

Are car insurance prices coming down?

After car insurance prices rose an eye-watering 42% in 2023, many UK drivers understandably demanded to know why car insurance was so expensive.

However, car insurance costs continued to fall compared to those of 2024. In 2025, prices were falling consistently after another drop in Q3; however, we’ve seen a slight increase in cost as we approached the new year. This is generally 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, with an average of £831. People here pay an average of £239 more than the national average of £592.

South West England has the cheapest average car insurance cost at £479. This is £113 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 £580.

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 17 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.

Average annual premium by age group

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 £1,121.74.  

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

Teenagers (Ages 17–21): Average Premiums by UK Region

London remains the most expensive region for young drivers aged 17, with average premiums of £2,798 – more than £1,000 higher than South West England (£1,705). Several high-population regions, such as the West Midlands and Yorkshire, also show higher costs for new drivers, underlining how your location, claims risk and repair costs impact pricing.

In contrast, South West England is consistently the cheapest region across all ages, highlighting how location alone can materially affect premiums for young drivers.

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 £1,479 a year for car insurance. That’s 168% more than older drivers, who pay around £552.

This trend is true even for the areas that have cheaper car insurance costs. Young drivers in Scotland pay an average of £600 more than 65+ year-olds.

Last Updated: 8th Jan 2026
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 – December 2025, across all age groups.

Want more info on this price index?

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