British drivers are now paying an average of £713 for comprehensive car insurance, according to industry data from Confused.com powered by WTW. The figure, based on more than six million quotes for new business policies, shows costs have remained stable over the past 12 months, with the average premium falling by £22 and standing 17% lower than two years ago.
Young Drivers See Biggest Year-on-Year Savings
The car insurance price index reveals that young drivers are benefiting from the largest reductions. Those aged 17 are now paying £1,755 on average, which is £253 (13%) less than a year ago. Similarly, 18-year-olds are paying £259 (11%) less, with their average premium now at £2,083 – the highest of any age group.
Matt Crole-Rees, motoring expert for car insurance at Confused.com, said: “When you receive your car insurance renewal price, it’s easy to think that’s the best price you're getting. But that’s not necessarily the case. It’s also worth remembering your circumstances can change from year to year. You may need a different level of cover or want to update some details, and this won’t be reflected in the renewal price you receive.”
Regional Variations and Older Drivers
While younger motorists see savings, older drivers face increases. Those aged 70 are now paying £20 (5%) more than a year ago, with an average annual premium of £411. Regionally, Inner London remains the most expensive area in the UK, with motorists paying an average of £1,079. Northern Ireland has seen a significant rise of £209 (25%) year-on-year, bringing the average premium to £1,059.
The data also highlights that shopping around can yield substantial benefits. Running a quote 28 days before renewal can secure savings of up to 53% compared with buying a policy on the final day of current cover. Crole-Rees added: “Shopping around early is key and could save you 53% compared with buying a policy on the day your current cover renews. And if someone else can occasionally use your car, adding them as a named driver may not only provide greater flexibility but could help reduce your premium too.”
Renewal Risks and Savings Opportunities
Further research among 2,000 drivers found that 51% have seen their renewal premium increase during the past three months. A year ago, premiums averaged £735, meaning drivers who simply accepted their renewal price could now be paying more than £800, around £90 more than the average premium paid today. However, those who switched providers saved £80 on average.
To secure the best deals, experts recommend being honest about mileage, as under-declaring can invalidate a policy while overestimating can lead to overpaying. Adding a named driver can also help, with sole drivers paying an average of £806 compared with £691 for those with an additional named driver. Installing security devices like steering wheel locks or trackers, and considering where the car is parked overnight, can also reduce costs.
