How Much Does Car Insurance Cost In The UK?
The average UK car insurance premium is around £560 to £710 per year for fully comp cover, depending on which industry measure you use. Your actual cost depends on your age, vehicle, location, and claims history.
After peaking at nearly £995 in late 2023, premiums have fallen by around 29% and are still trending downwards. But averages hide enormous variation, with 17-year-olds paying over £1,700 while drivers aged 40 to 60 can pay under £500.
Below we break down what car insurance actually costs by age, cover type, and region, and show you how to get a cheaper car insurance quote.
The average UK car insurance premium is around £560 to £710 a year, but your age, car, location, and claims history can push it well above or below that range. Shopping around at renewal is the single most effective way to pay less.
Compare car insurance quotes to find the best price for your profile.
What is the average cost of car insurance in the UK?
The Association of British Insurers puts the average fully comp premium at around £559, while the Confused.com Price Index puts it at £711.
Why the two figures differ
The ABI figure is based on what customers actually paid, while the Confused.com index tracks quoted prices from over six million quotes per quarter. Quoted prices are typically higher than what people end up paying after shopping around.
How premiums have changed
Premiums peaked at nearly £995 in December 2023, driven by repair cost inflation and parts shortages. They’ve since fallen around 9% year-on-year through early 2026, though the rate of decline is now slowing.
Cover type comparison
| Cover type | Typical annual cost | What it covers |
| Third-party only | £300-£600 | Damage to other people and their property only |
| Third-party, fire and theft | £350-£650 | Adds theft and fire protection for your car |
| Fully comp | £400-£900 | Full cover including accidental damage to your own car |
Fully comp isn’t always the most expensive option. Because higher-risk drivers tend to buy third-party, fire and theft or third-party only, fully comp can sometimes cost the same or less.
How much does car insurance cost by age?
Age is the single biggest factor in your premium. Young drivers pay the most because they have the highest accident rates, while drivers aged 40 to 60 typically pay the least.
Average premiums by age group
| Age group | Typical annual premium | Notes |
| 17-18 | £1,500-£2,500+ | Highest premiums, black box can help |
| 19-21 | £1,000-£1,800 | Still high but improving each year |
| 22-25 | £600-£1,200 | Notable drop, especially with no-claims years |
| 26-40 | £400-£800 | Premiums stabilise at more affordable levels |
| 40-60 | £350-£550 | Lowest premium bracket for most drivers |
| 65+ | £400-£700 | Gradual increase as accident risk rises with age |
See our full guide on how much young driver insurance costs for a detailed breakdown of the 17-25 age range.
What other factors affect your premium?
Beyond age, your vehicle, location, claims history, and no-claims discount account for most of the variation in what you pay.
Vehicle insurance group
Every car is assigned an insurance group from 1 (cheapest) to 50 (most expensive). A Group 1 hatchback might cost £150 less per month to insure than a Group 30 car.
Check the group before buying if insurance cost matters to you. Small hatchbacks like the Volkswagen Up and Fiat Panda sit in Groups 1 to 3.
No-claims discount
Each claim-free year typically earns 5 to 10% discount, building to 60 to 70% after five or more years. A £1,000 base premium becomes £300 to £400 with a full no-claims discount.
Location
Your postcode affects your premium more than most people realise. Inner London averages around £1,093 per year, while the South West of England averages closer to £492.
That’s more than double for the same driver and car, purely based on local theft, accident, and vandalism rates.
Annual mileage
The more you drive, the higher your risk exposure. Keeping your declared mileage accurate and as low as possible helps reduce your premium.
Our guide on how car insurance is calculated covers the full picture.
How does a claim affect your insurance cost?
Even a single claim can increase your premium by 20 to 50% at renewal, and the impact typically lasts three to five years.
Fault claims
A fault claim is the biggest premium hit after age. Expect a 40 to 60% increase at your next renewal, plus the loss of one or more years of no-claims discount.
Non-fault claims
Even if the accident wasn’t your fault, some insurers increase premiums by 10 to 20%. They view any claim involvement as a statistical risk indicator.
Protecting your no-claims discount
No-claims protection is usually worth the small extra cost. It allows you to make one or two claims without losing your discount.
Check your renewal date so you know when your discount is next at risk.
How can you find cheaper car insurance?
Shopping around is the single most effective way to reduce costs. Switching insurer at renewal can easily save £200 to £500 per year.
Use multiple comparison sites
Different sites have access to different insurers. Use at least two or three, including SimplyQuote, for the widest range of quotes.
Check direct-only insurers
Some major insurers like Direct Line and Aviva don’t appear on comparison sites. Get direct quotes alongside your comparison results to make sure you’re not missing a better deal.
Increase your voluntary excess
Raising your voluntary excess from £250 to £500 or £1,000 can reduce premiums by 10 to 20%. Only choose an excess you can afford to pay if you need to claim.
Consider black box insurance
A black box policy tracks your driving and rewards safe behaviour. It’s especially useful for younger drivers who can prove they drive carefully.
Choose a low insurance group car
If you’re buying a new vehicle, check the insurance group first. The difference between a Group 5 and a Group 25 car can be hundreds of pounds per year.
Should you pay monthly or annually?
Paying annually saves 10 to 15% compared to monthly instalments because monthly payments include interest at 15 to 30% APR.
The cost difference
| Payment method | Example cost (£600 policy) | Annual difference |
| Annual lump sum | £600 | Cheapest option |
| Monthly instalments | £660-£690 | £60-£90 more per year in interest |
When monthly makes sense
If the lump sum would strain your budget, monthly payments ensure you have continuous cover rather than risking a gap. A gap in cover can increase future premiums and is illegal if you drive during it.
Frequently asked questions (FAQs)
Around £560 to £710 per year for fully comp cover, depending on whether you use the ABI figure (£559) or the Confused.com Price Index (£711). Your actual quote will vary based on your age, vehicle, and location.
Drivers under 25 have statistically higher accident rates, and insurers price accordingly. See our full guide on why young driver insurance is so expensive for ways to bring the cost down.
A fault claim typically increases premiums by 40 to 60% at the next renewal, and the impact lasts three to five years. Non-fault claims can add 10 to 20%.
Yes, annual payment typically costs 10 to 15% less than monthly instalments because you avoid interest charges at 15 to 30% APR.
Small hatchbacks in insurance Groups 1 to 5 are cheapest. These are common cars with low repair costs and modest engine power, such as the Volkswagen Up, Fiat Panda, and Skoda Fabia.
No. Fully comp is often the same price or cheaper because insurers associate third-party, fire and theft and third-party only policies with higher-risk drivers.
Yes, but the rate of decline is slowing. Premiums fell around 9% year-on-year through early 2026, down from 13 to 18% falls in late 2025.