The cost of car insurance continues to fall - But younger drivers who compare prices benefit from biggest savings

• The UK’s youngest drivers (17-20) are now paying an average of £2,151
• Meanwhile, the average cost of car insurance in the UK is now £777 - a £164 drop compared to March 2024.
• But not all drivers are seeing the benefits of savings. That’s as 1 in 2 (50%) UK drivers received a higher renewal price in the past 3 months.
• Shopping around and comparing prices is key, with drivers saving £77 on average by shopping and switching their insurance³.
• Why are younger drivers seeing such significant changes in their premiums? Data suggests more drivers aged 17 to 20 opted for telematics policies, otherwise known as black boxes, between 2020 and 2024 in a bid to avoid sky-high insurance costs¹.
• Plan ahead - younger drivers shopping around 20 days before their renewal saved as much as 28%, compared to purchasing on the day².

Drivers in the UK are now paying considerably less for their car insurance, with the UK’s youngest drivers seeing the biggest changes.

New data shows younger drivers could in fact be paying as much as 23% less annually - equivalent to £711 less, on average. This means drivers aged 17-20 are now paying £2,151 for their car insurance, on average.

That’s according to the latest car insurance price index by Confused.com, powered by WTW.

Overall, prices have dropped considerably across the UK. The average car insurance premium in the UK is now £777. This is a £164 (-17%) drop compared to March last year, meaning those who are shopping around are seeing great savings when buying a new policy.

But not all drivers are benefitting from the same savings when they get their renewal. Worryingly, further research shows that in the past 3 months, 1 in 2 (50%) UK drivers(3) received a more expensive renewal price, of around £81, on average.. This shows that while prices are dropping for those buying new policies, not all customers are seeing the benefits. However, of those who chose not to accept their renewal price and shopped around and switched insurers, they were able to save £77, on average.

It’s clear that shopping around and comparing prices offers great rewards. Especially for younger drivers who are saving a significant amount on their policies. In particular, 18-year-olds are now paying £711 (-23%) less compared to March last year. This means drivers of this age are now paying £2,434, on average. This is the lowest prices have been for drivers of this age in almost 2 years.

Meanwhile, 17-year-olds are also facing significant savings, with prices now £661 (-23%) cheaper than last year. This means drivers of this age are now paying £2,258, on average.

And the steep drop in prices also brings good news to 20-year-olds, who are now paying less than £2,000 for the first time in almost 2 years. Prices for these drivers dropped by £543 (-22%) since March last year to £1,943, on average.

These steep decreases in premiums bring good news to younger drivers, after facing prices almost doubling just over 12 months ago. That’s as prices for 17 and 18 year olds increased by more than £1,400, or as much as 98%, at the end of 2023.

Average premiums for drivers aged 17-25 (February 2025)

But what is driving these significant savings for younger drivers? Overall, prices are dropping for all drivers. And there could be a number of reasons behind this. For example, if fewer claims are being made, insurers are starting to adjust their prices to reflect the risk on roads. And with newer cars adopting more safety technology, cars could be deemed less likely to be involved in accidents or at a lower risk of theft.

However, further data from Confused.com shows that younger drivers are also taking additional measures to reduce their insurance costs. In particular, there has been a significant shift between 2020 and 2024 in the number of drivers opting for telematics policies, otherwise known as black boxes. These devices track a driver’s habits and driving patterns to calculate a more accurate price. This is often based on when and how often they are driving and how they are driving too.

According to Confused.com data, there has been a 21 percentage point uplift in sales of telematics policies for drivers aged 17-20 between 2020 and 2024¹. And similarly, last year saw a 15%pt increase in telematics policies bought by 21-25 year olds, compared to 2020.

Similarly, younger drivers are typically opting for cheaper cars, which can be cheaper to insure. Overall, 68% of drivers aged 17-20 insured a car valued under £5,000 in 2024. And this suggests that, while insurance prices are dropping for younger drivers, young drivers are looking for other ways to reduce the total cost of motoring.

As well as comparing prices, there is another important way to save money. According to Confused.com data, drivers aged 17-25 typically buy their insurance around a week before their renewal is due. And data shows that this doesn’t always offer the best price. In fact, those who shopped around, around 20 days before their renewal, paid as much as 28% less compared to on the day².

Prices have also dropped for drivers in other age groups. For example, drivers aged 32 are now paying £981, following a £220 (-18%) decrease since last March. And drivers aged 55 and over are now paying less than £600 for their insurance, on average.

Older drivers typically pay less for their insurance, due to being considered a lower risk of making a claim. Where you live can affect your risk profile. Inner London in particular has significantly higher premiums compared to other UK regions. The average price of car insurance in the region is now £1,208. While this is the most expensive region for car insurance, drivers here are now paying £293 (-20%) less if they shop around, compared to last year, on average.

Meanwhile, a £224 (-18%) drop in prices in Outer London means drivers in the region are now paying less than £1,000 for their car insurance for the first time in 2 years. The average premium in the region is now £996. It’s a similar picture in the West Midlands, where prices are now £943. Again, this is the first time prices are below £1,000 since early 2023. Prices in the region have fallen by £214 (-18%) since last March.

However, even with prices dropping, there are ways for drivers to save money on their insurance. Confused.com experts offer some tips on how to get cheaper car insurance:

• Don’t settle - even if your renewal price is cheaper than last year, you could save even more by shopping around.
• Be accurate with your mileage - underestimating your mileage to suggest you are driving less could in fact have the opposite effect. Drivers who are on the road less could be deemed as less experienced and therefore a higher risk. You should always be accurate with how many miles you expect to drive, or you could invalidate your policy.
• Enhance your car security - many modern cars are installed with safety features that will reduce the risk of theft. But adding a steering lock or parking in a well-lit area will reduce this even further and could save some money on your insurance too.
• Check your job title - often there are many ways to describe the same job,some of which may appear a higher risk than others. When quoting, look to see if another job title fits your description and see if it can improve your price.

Rhydian Jones, motoring expert at Confused.com, comments, “We’re starting to see a consistent trend of prices decreasing, and this is great news for drivers! This could be because insurers are paying out fewer claims than before. Paying out on less claims means more savings to pass on to customers. But this doesn’t mean that prices won’t start to increase again in the future, especially if claims start to increase.

“In particular, younger drivers are seeing the biggest savings when shopping around. Just over 12 months ago, prices increased by as much as 98% for some. So these latest drops could be great for young drivers buying insurance. It’s interesting to see that young drivers have been shopping around for their insurance, with more drivers looking to buy telematics, or basic level policies. These could work out as a cheaper option, so we’d always encourage younger drivers to compare different policy types to see what works best for them.

“But staying on top of your insurance is key to getting the best price. You’ll often see a better price if you shop around at renewal time.. Even if your renewal price from your insurer is cheaper than last year, it’s likely there will be another insurer out there offering a better price. -Doing this ahead of time can save you even more too. Our data shows that if you shop around about 3 weeks before your policy is due to renew, you could benefit from the biggest savings. Leaving it too late, or simply accepting your insurer's renewal price could mean you lose out on great savings.”

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Notes to editors