How much does UK car insurance cost?

We’ve been crunching the numbers to find out how much car insurance costs. Our data shows average car insurance prices have been gradually rising since the end of 2021.

Last quarter, our data showed median car insurance prices coming down for the first time since Q1 2023. However, new data shows that car insurance are starting to climb again and are now 23% higher than they were a year ago.

According to a report from the House of Commons, the rising cost of UK car insurance is due to a rise in the cost of replacements and repair costs, the rising costs of energy and inflation.

To cover these rising costs, insurers are passing it on to their premiums so customers end up paying more.

The median cost of a car insurance policy between April 2024 and June 2024 was £456 – up by just over 2% from the previous quarter, when costs were £447.^[1]

What factors impact the cost of car insurance?

The cost of your car insurance can be affected by:

The policy type

We found that the cheapest type of car insurance was third party, fire & theft (TPFT), which cost £449 annually.^[2]

You’d probably expect the most basic level of cover to be the cheapest, but the average cost of third party only (TPO) insurance is £599 – 33% more expensive than third party, fire and theft cover.

Traditionally, you'd also expect comprehensive cover to be beaten in price by TPFT cover. But with an average of £455, just £6 difference annually compared to TPFT, opting for a comprehensive policy could offer you more protection for a similar price.

Your age

Car insurance premiums are usually more expensive for younger drivers.

That might seem really unfair if you’re a careful driver and you’ve never been in an accident, but it’s because of how insurers use risk to calculate premiums.

Younger drivers between the ages of 17 and 24 are statistically more likely to be inexperienced drivers who make claims. Insurers will price your policy based on this overall risk.

So even if you’ve never crashed your car or got a speeding ticket yourself, that overall risk for your age group will push up the price of your policy.

Comprehensive car insurance costs a median of £1,021 for younger drivers. That drops by 59% to £435 for comprehensive cover when drivers are aged 50-plus.^[3]

Younger drivers probably will not be able to make savings by choosing a lower level of cover either, as third party fire and theft and third party only cover were still more expensive for younger drivers.

Insurance providers take lots of different factors into account when calculating your car insurance premiums:

Your occupation

You have to tell your insurer about your employment when you take out car insurance. The occupation you select can have an effect on the cost of your premiums.

Our data^[4] shows the cheapest occupations for car insurance are:

You should always be honest when declaring your occupation to an insurer. Failure to do so could invalidate your policy.

Your location

Where you live gives insurers an indication of the crime rate and where you’re likely to park your car overnight.

Living in busy, built up areas like London can mean an increased risk of your car being damaged or stolen. There’s also a greater chance that you’ll need to park your car on the street, rather than safely locked away in a garage.

Our data shows car insurance in Greater London costs around £649 a year. That's around 76% more expensive than Wales, where the median cost is £368.**

To give you a clearer idea, here’s the average cost of car insurance in each UK region:

Your mileage

Statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your car insurance will probably be more expensive than someone who drives only 6,000 miles.^[5]

It’s not always a guarantee, but simply driving less could help you lower the cost of your car insurance.

Here are the median costs of insurance based on how many miles you drive:

What else affects the cost of my car insurance?

Your premium might also depend on things like:

• How long you’ve been driving
• Your driving history – including accidents and driving offences
• Your no-claims discount
• All of the above for any other named drivers you add to your policy
• The amount of voluntary excess you choose
• The make and model of your car
• Where you park your car overnight

Insurers use all of this information to statistically assess your level of risk and calculate your premium accordingly.

It’s really important to compare quotes before you buy car insurance because each insurer will calculate this risk and price its premiums slightly differently – that’s why you get lots of different quotes at different prices.

Why has car insurance gone up?

According to Consumer Intelligence, the average price paid for motor insurance increased by 34% in 2024 compared to the previous year. This was largely driven by increases in repair costs, followed by an increase in vehicle thefts and the increasing cost of replacing written-off vehicles.^[6]

Additional to this, all of the ‘risk factors’ above are used to calculate your car insurance. So if anything changes – like increasing your annual mileage or moving house – this can affect the cost of your car insurance.

You need to tell your insurer straight away about some changes, like a change of address or job. And it might need to adjust your premium immediately to charge you more or give you a part-refund.

But for other changes, your insurer will only need you to tell it when you renew or take out a policy. Your insurance policy booklet will tell you when you need to let your insurer know about any changes.

Find out more about why your car insurance may have gone up.

Will the cost of car insurance go up in the future?

If inflation keeps going at the rate it is, then everything will get more expensive, including car insurance. But inflation means wages and government aid schemes should also increase to hopefully fall in line with rising expenses.

Will the cost of my car insurance go up after an accident?

If you’ve had an accident and it was found to be your fault, your premiums are likely to be higher at renewal time.

Unless you protected your no-claims, you’ll have lost some or all of your no-claims discount. Insurers will also see you as an increased risk and will rise premiums accordingly.

But you might find that your insurance has gone up even if the accident was not your fault and you did not make a claim.

That might seem unfair, but it’s because insurers will sometimes decide that a history of non-fault claims make you more at risk of making a fault claim in the future. Again, it’s all based on statistical risk.

If your insurance has shot up after a fault or non-fault claim, make sure you compare car insurance to see if you can find a better deal elsewhere.

You need to declare all fault and non-fault accidents and claims when you get quotes for car insurance or your policy could be invalid.

Is it cheaper to pay for car insurance annually or monthly?

It’s cheaper to pay for your insurance annually in a lump sum at the start.

If you choose to pay monthly, you enter into a credit agreement with the insurer and it’ll charge you interest. You’ll also be credit checked during your insurance application.

The interest rates can be higher than the APRs you see for credit cards which means they can add considerably to your insurance cost.

And the higher the cost of your policy, the higher the cost of the interest – so young drivers who already pay more for car insurance are affected even worse.