Young motorists across the UK are still facing annual car insurance bills exceeding £2,500, despite a significant recent drop in average costs. New data reveals a complex picture for drivers typically born in 2008 or 2009, where regional disparities create a stark postcode lottery.
National Averages Show Encouraging Drop
According to the latest car insurance index from comparison service Quotezone, road users aged between 17 and 24 have seen their premiums fall by almost £1,000. This brings the national average annual cost down to £1,121.
The average premium for young drivers is now £998 lower than it was in the final quarter of 2024. In a striking comparison, young motorists were paying an average of £3,055 for cover as recently as February 2024. For the last three months of 2025, the average UK car insurance premium across all ages stood at £607.
A Stark Regional Divide for Teen Drivers
While the national average has improved, the reality on the ground varies dramatically depending on location. London remains the most expensive place in the country for young motorists to insure a vehicle.
In the capital, 17-year-olds are paying an average of £2,798 per year. Costs for 18-year-olds in London are just over £2,500, before falling sharply to £1,484 by age 19.
The high costs are not confined to London. In Birmingham and the West Midlands, 17-year-old drivers face average annual premiums of £2,507. Teen drivers in Yorkshire are typically charged £2,432, while those in north west England pay £2,258 for the same age group.
South west England offers the cheapest premiums for 17-year-olds, where motorists pay an average of £1,705 annually.
Expert Warning and Potential Solutions
Greg Wilson, chief executive and car insurance specialist at Quotezone, has issued a warning over the financial burden placed on new drivers. He highlighted the cumulative cost of getting on the road.
"Unfortunately, many young drivers are paying a staggering cost to simply get on the road," Mr Wilson said. "Driving lessons, tests and road tax are increasingly expensive, and insurance premiums for these motorists are the highest of all age ranges in the UK."
He explained the motivation behind their research: "With our latest car insurance index, we wanted to dig down into young driver premiums to see just how much teenagers are paying for insurance across the country and how that varies across their first few years of driving."
Mr Wilson recommended telematics insurance as a potential solution for cost-conscious young drivers. This type of policy, which uses a black box or smartphone app to monitor driving behaviour, can help responsible drivers prove their safe habits and subsequently cut their premiums.
