Cheapest young driver insurance in a decade

Relief for drivers, especially those ages 17-24, as figures reveal car insurance premiums have dropped to their lowest in 10 years.

Young drivers are finally seeing a significant reduction in premiums as average prices drop to £1098 – with research showing that’s the cheapest price in a decade, with September 2015 recording an average of £1304.  

Across the board, 17-24-year-olds are experiencing a slash in prices with half of the UK regions now below £1000 – with Scotland, East of England, North East England, South East England, Wales and South West England ranging from £986 down to £855. 

A dramatic decline from February last year, when premiums for 17-24-year-olds were over £3000.  

Car insurance experts at Quotezone analysed the latest quarter of statistics to find a welcome decrease in premiums right across the age groups and right across the UK, with overall average premiums now down at £591.

The UK average started 2025 at £651- down £165 from Q1 2024 when it reached £816 – but has since fallen significantly, marking positive progress for cash-strapped motorists.

Car insurance premiums have been in decline since the dramatic surge in 2023, when premiums started the year at £621 then escalated to an average of £885 by Q4. 

According to the new car insurance index from Quotezone, all regions have witnessed a decline in costs from July to September this year, however motorists in London, West Midlands and North West England are still paying over £600.

Drivers in the Wales and South West England are enjoying costs in the £400 range, dropping to £483 and £469 respectively during the most recent quarter.

While the insurance experts hope the prices will continue to taper off throughout 2025, it’s important for drivers to realise their choices could be making their individual premiums more than they should be.

While it can be difficult for drivers to change where they live, work and the car they drive – there are simple ways to find savings, such as reviewing where they park the car overnight, any modifications added to the vehicle and the job title they use on the policy.

If the job title still accurately describes what they do, drivers could find price changes in the variations, just one of many factors that could significantly affect premium prices.

Drivers should also pay particular attention to any question on the quote form marked as price sensitive – this usually means it’s an important rating factor for insurers.  

Greg Wilson, CEO and car insurance expert at Quotezone.co.uk, said: “The insurance industry has been under a lot of pressure of late to be more open and transparent about its processes. 

“We feel these price indexes are really helpful, they give customers the chance to see what a realistic cost looks like for their area and for their age, helping them to negotiate and hunt for more competitive prices.

“Young drivers are still exposed to hefty premiums, given their accident rates and lack of driving experience but it’s incredibly positive to see six of the twelve regions in the UK now averaging under £1000 for 17–24-year-old drivers – and the lowest average UK cost for this age group for a decade.

“There are a number of factors at play in this apparent price stabilisation for this age group, including of course telematics. These products can make a substantial difference, allowing new drivers to demonstrate their safe driving skills in return for cheaper premiums. 

“All drivers can benefit from really understanding their policy and being as accurate as possible with estimations such as mileage. Even the use of the car, where it’s parked overnight and any modifications can dramatically affect the cost.

“It is hoped this impressive decline in premium prices will continue into the last quarter of the year, making 2025 a turning point for car insurance, and a positive step towards a more affordable 2026 for all drivers.”

In recent years drivers have been under increased financial pressure with supply chain issues making parts more expensive, inflation making labour more costly and advanced technologies such as electric and automatic cars adding to the growing cost of insurance claims – now at a record high.*

The FCA also found that increased thefts, hire costs and uninsured drivers, were also bolstering increased premium costs.**

The hope is that the FCA and the government’s new Motor Insurance Taskforce will continue to investigate pricing issues and help this decline continue, with a final report expected in autumn 2025. 

Quotezone is one of the largest price comparison sites in the UK, with 20 years helping drivers compare products and prices, in a bid to finding more affordable premiums.

References:
A full look at Quotezone’s data on UK average car insurance premiums per age and region can be found here, including a 10-year review of young driver costs: https://www.quotezone.co.uk/car-insurance/average-car-insurance-premium-by-region

*https://www.abi.org.uk/news/news-articles/2025/2/motor-claims-hit-record-11.7-billion-in-2024/
**https://www.fca.org.uk/news/press-releases/premium-hikes-driven-claims-costs-insurers-told-improve-claims-handling