Car insurance premiums up a third for young drivers
Car insurance premiums for drivers under 25 has increased by 34% since 2022, according to new research.
Analysis carried out by MoneySuperMarket has found that average premiums for under 25s is £1,463 this year compared to £1,093 in 2022.
Meanwhile, average premiums for those over 25 has been recorded at £632.
The cheapest places to insure a car in England include Shrewsbury, Cambridge, Bath, Colchester, Exeter, Stevenage and Reading, with Edinburgh and Llandudno the most affordable areas in Scotland and Wales respectively.
However, average prices for young drivers in East London have escalated to £2,413 as of August 2026, with Birmingham and Bradford also among the most expensive regions for car insurance premiums.
Alicia Hempsted, car insurance expert at MoneySuperMarket, said: “With insurance premiums for young drivers now averaging over £1,400 a year, it’s more important than ever for young motorists to be savvy when budgeting for their first car and any associated costs.
“It’s always worth getting a sense of likely costs ahead of time, so we’ve got a quick car insurance tool online to help young drivers cut through the confusion and get a clearer picture of what they can expect to pay. By using real-time data and skipping lengthy forms, it gives users a super quick and accurate starting point to plan with confidence.”
