Young drivers hit with £2,500 insurance bills despite price drop impacting millions

While the drop offers welcome relief, it was found to mask the reality facing thousands of teenagers across the UK who remain priced off the road because of where they live and their lack of driving experience.

The data showed average premiums for young drivers are now £998 lower than in the final quarter of 2024, following years of steep increases.

Just over a year ago, costs reached record highs. In February 2024, young motorists were paying an average of £3,055 for cover, after insurance prices surged across the market.

But according to reports, prices have since eased nationwide. Across all UK regions, half now report average premiums below £1,000 for young drivers, while the wider car insurance market has also seen costs fall.

For the last three months of 2025, the average UK car insurance premium stood at £607, reflecting a broader slowdown in pricing.

Despite this, young drivers remain the most expensive group to insure, and large regional differences continue to push costs far higher in some areas.

London remained the most expensive place in the country for young motorists, with 17-year-olds paying an average of £2,798 a year for insurance.

Meanwhile, 18-year-olds in the capital fare only slightly better, paying just over £2,500, while premiums fall sharply by age 19 to £1,484.

The West Midlands was the second most expensive region, where newly qualified 17-year-old drivers face average annual costs of £2,507. Yorkshire followed closely behind at £2,432, with northwest England charging £2,258 for the same age group.

Even in the cheapest parts of the country, young motorists were unable to escape high costs. In southwest England, it offered the lowest premiums for 17-year-olds, but drivers there still pay an average of £1,705 a year.

The figures underlined how heavily location affects insurance prices, with London teenagers paying more than £1,000 extra compared with their counterparts in the southwest.

Insurers explained how young drivers are charged more because they are statistically more likely to be involved in serious accidents.

Figures showed male drivers aged 17 to 24 were four times more likely to be killed or seriously injured on the roads than drivers over 25.

Although this age group makes up just seven per cent of licence holders, it accounts for 24 per cent of serious road collisions. Research also suggested one in five new drivers will be involved in a crash within their first year of driving.

Studies revealed that younger motorists were also more likely to engage in risky behaviour, including using mobile phones while driving and failing to wear seatbelts.

Another major factor behind high premiums was the lack of claims history. Without years of accident-free driving, young motorists miss out on discounts that significantly reduce costs for older drivers.

Greg Wilson, chief executive and car insurance specialist at Quotezone, said: "Unfortunately, many young drivers are paying a staggering cost to simply get on the road. 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.

"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."

He advised new drivers to choose their first car carefully, warning that powerful engines and vehicle modifications can push costs even higher.

Mr Wilson also recommended telematics insurance, which monitors driving behaviour and can help responsible drivers cut their premiums.

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