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Monday, October 20, 2025
United Kingdom —
New data shows young driver car insurance premiums have fallen to lowest level in a decade
Car insurance premiums for young drivers in the United Kingdom have fallen to their lowest point in ten years, according to new analysis by insurance comparison website Quotezone.[1]
The new figures were recently published in Q3 as part of Quotezone’s quarterly Price Index, and have been corroborated by separate data from the Association of British Insurers (ABI), which also reported a fall in car insurance premiums for motorists in 2025.[2]
Drivers aged 17–24 are now paying an average of £1,098 for annual cover. According to Quotezone, this is the lowest average since September 2015, when the figure stood at £1,304.[1]
Regional changes
Quotezone reports that six out of twelve UK regions now have average premiums below £1,000 for 17–24-year-olds: Scotland, East of England, North East England, South East England, Wales and South West England, with averages ranging from £986 to £855.[1]
Findings show this is a significant reduction compared to February 2024, when average young driver premiums exceeded £3,000.[1]
The car insurance index shows the overall UK average premium across all age groups has also dropped to £591.[1] It began 2025 at £651, down from £816 in the first quarter of 2024. Premiums had previously surged in 2023, rising from £621 in January to £885 by December.[1]
Despite the fall in most regions, the findings show drivers in London, the West Midlands and North West England are still paying over £600 on average. Drivers in Wales and South West England currently enjoy the lowest costs, with averages of £483 and £469 respectively.[1]
Industry response
Greg Wilson, founder and chief executive of Quotezone, said:
“These price indexes are helpful because they allow customers to see what a realistic cost looks like for their area and age. Young drivers still face higher premiums due to accident rates and lack of experience, but it’s encouraging to see six regions now averaging under £1,000.”
Wilson said telematics policies — which monitor driver behaviour — have contributed to decreasing costs for younger motorists. He added that factors such as job title, overnight parking location and car modifications can affect premiums.
Wider pressures on insurers
Industry bodies say insurers are still facing higher claim costs. The Association of British Insurers (ABI) reported that motor claims reached a record £11.7 billion in 2024, driven by rising repair costs, inflation and more expensive vehicle technology.[3]
The Financial Conduct Authority (FCA) also found that increased thefts, higher hire car costs and uninsured drivers contributed to past premium rises.[4]
The FCA and the government’s Motor Insurance Taskforce have begun work to investigate car insurance premium prices but no confirmed publication date of their findings has been announced.[5]
Background
Quotezone, founded in 2005, is one of the UK’s longest-running insurance comparison websites. The company says it publishes quarterly insurance price indexes to improve transparency and help consumers understand trends.[1]
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- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Average UK car insurance premiums by region and age — Quotezone, {{{date}}}
- ↑ Motor claims hit record £11.7 billion in 2024 — Association of British Insurers, February 2025
- ↑ Premium hikes driven by claims costs; insurers told to improve claims handling — Financial Conduct Authority, 2025
- ↑ Ministers bring together industry experts and consumer champions to tackle spiralling costs for drivers — UK Government – Department for Transport, 4 October 2024
