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Average premium has fallen significantly from last year's record highs. Young drivers have seen the biggest relief in a decade, while location can more than double your bill. Find out what you should really be paying in 2026.
Car insurance is one of the biggest ongoing costs of motoring in the UK, and understanding what you should expect to pay can help you spot a good deal – or recognise when you're being overcharged. After two years of record-breaking premium increases, there's finally some good news for drivers in 2026.
This guide breaks down the average cost of car insurance by age, region, and other key factors, using the latest data from the Association of British Insurers (ABI) and leading comparison sites. Whether you're a young driver looking for your first policy or an experienced motorist seeking better value, you'll find the figures you need to benchmark your own quotes.
According to the Association of British Insurers, the average cost of comprehensive car insurance in Q3 2025 was £551 – down 10% from £612 in the same period of 2024. Data from Q4 2025 shows the average has settled around £607, representing an 18% decrease compared to the same time in 2024.
| Metric | Amount |
|---|---|
| UK average annual premium (ABI, Q3 2025) | £551 |
| UK average annual premium (Q4 2025) | £607 |
| Average monthly cost (with 22.9% APR) | £53-£62 |
| Year-on-year change | Down 10-18% |
| Total motor claims paid (2024) | £11.7 billion |
This marks the first sustained period of falling prices since 2021. After premiums rose by 42% in 2023 alone, and continued climbing through early 2024, the market has finally started to stabilise. However, prices remain significantly higher than pre-pandemic levels – the average was around £430 in 2021.
Your age is the single biggest factor affecting your car insurance premium. Insurers use age as a proxy for experience and risk – younger drivers are statistically far more likely to make claims, and those claims tend to be more expensive.
| Age | Average Premium | Notes |
|---|---|---|
| 17 | £1,932 | Highest premiums – down £635 (25%) from 2024 |
| 18 | £1,700-£1,800 | Still very high, but typically 10-15% less than 17 |
| 19 | £1,400-£1,600 | First significant drop if clean record maintained |
| 20 | £850-£1,200 | Starting to build no claims bonus |
| 21-24 | £720-£1,000 | Average for 17-24 age group: £1,121 |
| 25 | £680-£720 | Key milestone – no longer classed as young driver |
| 30-35 | £580-£640 | Premiums approaching UK average |
| 40-50 | £470-£550 | Prime driving years – lowest risk bracket |
| 51-65 | £420-£500 | Experienced drivers, strong NCB |
| 66-70 | £405 | Cheapest age bracket – lowest claims frequency |
| 70+ | £450-£600+ | Premiums start rising again with age |
Premiums typically drop by around 45% between ages 20 and 55, then rise again by approximately 50-60% from age 65 to 75. The cheapest premiums are found in the 66-70 age bracket, not the 40-50 range as many assume – this reflects decades of driving experience combined with lower annual mileage.
Young drivers face the highest premiums because statistics show they represent the greatest risk to insurers. The numbers are stark:
Young driver premiums have dropped significantly in 2025/2026. The average for 17-24 year olds has fallen to £1,121 – down from over £2,100 at the peak in early 2024, and the lowest level in 10 years. 17-year-olds specifically are paying £635 less than a year ago, a 25% reduction.
Read our comprehensive guide on young drivers insurance for specific strategies to reduce costs if you're aged 17-24.
Where you live significantly affects your premium. Urban areas with higher traffic, crime rates, and accident frequency cost more to insure than rural locations.
| Region | Average Premium | vs National Average |
|---|---|---|
| Inner London | £1,119 | +£527 (89%) |
| Greater London | £831 | +£239 (40%) |
| Manchester | £849 | +£257 (43%) |
| Birmingham | £739 | +£147 (25%) |
| East Midlands | £580 | Near average |
| Scotland | £450-£520 | -£80 to -£140 |
| South West England | £479 | -£113 (19%) |
| Aberdeen (cheapest city) | £309 | -£283 (48%) |
Scottish cities consistently rank among the cheapest places to insure a car, with Aberdeen, Perth, Inverness, and Edinburgh all in the top 10. The biggest price drops over the past year have been seen in Manchester and Merseyside, where premiums have fallen by an average of £178.
Read our guide on how your postcode affects car insurance costs to learn more about regional pricing factors.
While prices are now falling, they remain significantly higher than a few years ago. Motor insurers paid out a record £11.7 billion in claims during 2024, with repair costs alone reaching £2.1 billion per quarter. Several factors have driven costs up:
Rising repair costs: Modern vehicles feature complex electronics, advanced sensors, cameras, and integrated systems. A simple bumper repair might now require recalibrating ADAS (Advanced Driver Assistance Systems). Labour costs have risen by up to 40% in recent years, and there's a shortage of skilled technicians.
Parts inflation: Supply chain disruptions and post-Brexit import complexities have pushed up the price of spare parts significantly. The ABI notes that parts inflation has been running at over 15% per year.
Vehicle theft: Thefts have risen significantly, particularly 'relay attacks' targeting keyless entry vehicles. The average claim for vehicle theft is now £11,800 – and many stolen vehicles are never recovered.
Electric vehicles: EVs are approximately 25% more expensive to repair than petrol equivalents and take 14% longer to fix. The average EV insurance premium is £707 compared to £558 for petrol cars.
Insurance fraud: The ABI estimates that 1 in 5 claims are affected by fraud, costing the industry around £400 million annually. These costs are ultimately passed on to honest policyholders.
Industry experts predict that premiums will continue to fall moderately through 2026, assuming inflation remains stable and the repair sector continues to improve efficiency. Several factors support this outlook:
However, don't expect a dramatic collapse in prices. Repair costs remain elevated, the transition to electric vehicles continues to present challenges, and the industry paid out record claims in 2024. The ABI forecasts that motor insurers may actually make losses in 2026, which could limit further price reductions.
Regardless of the market conditions, there are proven strategies to reduce your premium:
Compare quotes every year: Never auto-renew. Shopping around remains the most effective way to save money – comparison sites can reveal savings of several hundred pounds.
Choose a lower insurance group car: Vehicles in Groups 1-10 are significantly cheaper to insure. A Group 1 car could save a young driver over £1,000 annually compared to a Group 20 vehicle.
Build your no claims bonus: Five years of claim-free driving can reduce premiums by up to 75%. Drivers with 20 years NCB pay 57% less than those with just one year.
Consider telematics (black box) insurance: Young drivers can save up to 40% with black box policies that monitor driving behaviour. Safe drivers are rewarded with lower premiums at renewal.
Increase your voluntary excess: A higher excess means a lower premium – but make sure you can afford to pay it if you need to claim.
Pay annually: Monthly payments typically add 20-25% in interest charges. Paying upfront saves money if you can afford it.
Add security features: Thatcham-approved alarms, immobilisers, and tracking devices can reduce premiums, particularly for high-value vehicles.
Park securely: Keeping your car in a garage or on a driveway rather than the street can lower your premium.
Read our comprehensive guide on how to lower your car insurance premium for even more proven strategies to reduce costs.
Yes, premiums typically drop noticeably around age 25, as insurers no longer classify you as a 'young driver'. However, the reduction is gradual rather than sudden, and depends heavily on your driving record and no claims bonus. The biggest factor is your claims history – a 25-year-old who has built up several years of no claims bonus will pay significantly less than one who passed their test recently.
This seems counterintuitive, but third party policies are often more expensive because they're typically chosen by higher-risk drivers (often young or inexperienced) looking to save money. The pool of drivers choosing third party cover has a higher claims frequency, which pushes premiums up. Always compare both options – comprehensive cover is often cheaper.
As a new driver, expect to pay between £1,500 and £2,500 annually, depending on your age, location, and vehicle. 17-year-olds typically pay £1,700-£2,000, while new drivers over 30 may pay from around £600. Choosing a low insurance group car and considering telematics insurance are the most effective ways to reduce first-time costs.
According to ABI data, drivers aged 66-70 pay the lowest premiums at around £405 on average. This reflects their low claims frequency and decades of driving experience. Premiums start rising again after 70 as insurers factor in age-related risk increases.
Understand how to protect your hard-earned savings with our guide on no claims bonus protection.
Car insurance costs in 2026 are finally heading in the right direction after two years of painful increases. The average premium of around £550-£607 is down 10-18% from 2024's peaks, with young drivers seeing some of the biggest reductions.
However, your individual premium will depend heavily on your age, location, vehicle, and driving history. A 17-year-old in London might pay over £2,500, while a 65-year-old in Aberdeen could pay under £350 for identical coverage. Understanding these factors puts you in a stronger position to find the best deal.
The most important action you can take is to compare quotes before every renewal. Never auto-renew, always shop around, and consider factors like your car's insurance group and whether telematics insurance could work for you. In a market where prices vary dramatically between providers, the effort of comparing quotes could easily save you hundreds of pounds.
See how your premium compares to the average. Get quotes from multiple UK insurers via Brumble, see if you can find a great deal for your age and location.
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