The young pay the price

New data has revealed the UK regions with the highest car insurance premiums for young drivers.

London, North West England and Yorkshire are among the worst places for young drivers to insure their cars.

The average premium for young drivers reaches £3,750.

The price of youth

Price comparison site Quotezone.co.uk analysed insurance premiums for 17 to 24-year-old drivers in different regions across the country, ranking them from most to least expensive.

According to the Association of British Insurers (ABI), young motorists have been hit the hardest by soaring insurance costs. The cost-of-living crisis spiked premiums by more than 25% year on year.

With the added costs of learning to drive and buying their first car, many drivers can’t afford to get on the road after passing their test.

Of those who are driving, 25% are considering quitting due to rising costs.

Capital rises

The research from Quotezone.co.uk reveals significant differences in insurance costs depending on where you live.

Young Londoners pay over £1,900 more for cover compared to young drivers in Northern Ireland.

The insurance premiums for 17 to 24-year-olds in London have reached an eye-watering high, with young drivers forced to pay £3,750 on average to insure their vehicles.

This is closely followed by average premiums of £2,987 in North West England and £2,903 in Yorkshire.

Mid highs

Also included in the top five most expensive regions are the West Midlands and North East England, where young drivers are paying more than £2,500 for annual cover.

Young drivers in the East Midlands, South East England, and East of England are still paying between £2,290 and £2,480 for their premiums, while those in Scotland and Wales are being offered slightly better value at £2,259 and £2,244, respectively.

Lows in the north

Young drivers in Northern Ireland are spending the least on car insurance.

Although drivers there have seen similar price hikes, they still enjoy relatively cheap insurance premiums compared to other regions in the UK, totalling £1,842 on average.

The average costs for each area were calculated based on monthly premium prices between January and May 2024.

Keeping costs down

To keep insurance costs down, drivers are encouraged to compare quotes from different providers, pay annually if possible, improve vehicle security and add an experienced driver to the policy.

Quotezone.co.uk CEO Greg Wilson says that higher prices for young drivers are basically due to their lack of experience and higher risk.

“However, in recent years, insurance costs have soared, leaving drivers considering if they can afford to drive at all,” adds Wilson.

“With cover for under 25-year-olds now reaching over £2,000 annually across all but two of the UK regions, many young people are struggling to get behind the wheel. Instead, they have to rely on strike-prone public transport, even after investing over £3,000 in learning to drive and passing their tests.

Wilson provides some simple tips that can have a significant positive effect on insurance quotes and premiums

“Simple tweaks such as job title, the time you purchase and how you pay can all help cut costs. ”

Quotezone.co.uk’s top tips

1. Check your vehicle use

Premium prices can vary depending on your use of the vehicle; it may work out cheaper if a driver is using it for ‘social only’ purposes rather than for ‘social and commuting’, so check how the options affect the price and consider if you can make any changes—just be careful that all changes are accurate and reflect how you actually use the vehicle.

2. Check your job title

Job titles often affect the overall premium price. A tweak to your title could help you reduce your premium, so try quoting with variations. Just make sure the title is still accurate and describes the job you do; incorrect information could invalidate your insurance.

3. Review prices three weeks before renewal

The sweet spot for renewing a car insurance policy is 15 to 24 days before the policy is due to start, as data reveals drivers purchasing during this time save themselves an average of 33-45%.

4. Opt for a smaller engine

Be sure to check your vehicle’s engine size and horsepower; both can impact the cost of your premium. Also, some small engines are turbocharged, which can give them more power than might be expected, which will likely cause the premium to increase.

5. Park in a safe place

If possible, drivers should use their garages, driveways or carports for overnight parking. This can keep premium costs down because the safer you can keep your car, the cheaper it is to insure, likely a reduction of at least £140 if you can move your vehicle from the roadside to a private driveway overnight.

6. Opt for telematics or a black box

A telematics policy, or black box insurance, starts collecting driving data immediately, which can help the insurer with their risk analysis. This way, young drivers can demonstrate their safe driving skills and increase their chances of getting a competitive premium price.

7. Pay annually

If you can, it’s best to pay the annual premium all in one go to knock cash off your policy. Paying annually usually is cheaper because there is no interest to pay.

8. Add another driver

Adding a low-risk driver to your policy could bring down the premium costs, especially if the other driver is experienced and has a clean record – just make sure the main driver is actually the one who drives the car the most, or you could be charged with insurance fraud.

9. Improve vehicle security

Improving the vehicle’s security by fitting anti-theft devices or dash cams can help drivers get cheaper premiums. It’s worth getting the policy quotes first to consider whether the savings justify the extra cost of the devices.

10. Shop around

Never let a policy auto-renew; even if your provider was the cheapest option for you last year, it doesn’t mean they will be the cheapest this year; always shop around and compare products and don’t be afraid to switch providers; it’s an easy process which could lead to substantial savings.  Comparison sites are ideal ways to find better quality products and more competitive prices.

– ENDS –

Notes to Editor:

Full car insurance index of average premium prices across all age ranges throughout the UK regions.

Data tables – The data uses a random sample of over 100,000 UK car insurance policies from January – May 2024.