The UK regions with the highest car insurance premiums for young drivers has been revealed in new data – and it unmasks the size of the London premium.
Young Londoners pay nearly £1,500 more for cover compared to young drivers in Northern Ireland, research from Quotezone shows.
Under 25s have seen the largest annual increase in car cover costs with the typical premium rising £648 annually to £2,057 in February 2024.
Motorists are encouraged to shop around for their car insurance to see if they could save
Quotezone analysed insurance premiums for 18 to 24-year-old drivers in different regions across the country and found in the capital, young drivers are paying £2,811 on average to insure their vehicles.
London is followed by average premiums of £2,392 in West Midlands and £2,327 in Yorkshire – a gap of £419 and £484 respectively.
Young drivers in Northern Ireland spend the least on car insurance, totalling £1,359 on average.
This comes at the same time Compare the Market reports a general 46 per cent rise in car insurance premiums annually, with the typical premium costing £892.
It costs young people in 2024 a ginormous 135 per cent above the rate of inflation over the last 35 years, comparative to 1989 when it cost £3,234 (adjusted for inflation)
This is Money recently reported that a hike in premiums was the biggest driver behind the huge rise in the cost of young people getting on the road.
It costs an average of £7,609 to get a 17 to 20-year-old on the road and driving for the first year, according to the latest edition of MoneySupermarket’s Household Money Index.
Yet back in 1989 the average young motorist had to pay £1,285 (£3,234 adjusted for inflation) to get on the road. It means a rise of 135 per cent in 35 years.
The HMI took into account purchasing a licence, lessons and a test, plus the cost of actually driving – buying a car, insurance, fuel and charges such as ULEZ and parking tickets.
And the biggest reason for the cost increase by far is hikes in insurance premiums.
As a result nearly half of young people said they couldn’t afford to get driving without financial help from their parents when asked by MoneySupermarket.
Greg Wilson, chief executive of Quotezone, said: ‘In recent years insurance costs have soared, leaving drivers considering if they can afford to drive at all.
‘With cover for under 25-year-olds now approaching or exceeding £2,000 annually across the majority of UK regions, many young people are struggling to get behind the wheel, having to rely on strike prone public transport, after investing over £3000 on learning to drive and passing their tests’.
The biggest reason for the cost increase came from the massive hike in insurance premiums – something This is Money has covered in detail
The HMI also found there was a regional difference in the cost of getting on the road, with young Londoners being hit the hardest.
In London it cost an average of £8,422 but Cardiff it cost £7,309.
It’s not surprising then that younger drivers are turning to alternative methods to traditional car ownership.
A coinciding study by Deloitte found younger drivers are more likely than older age groups to favour a subscription service for cars over ownership.
Based on responses from over 1,500 UK consumers, Deloitte’s Global Automotive Consumer Study found that interest in car subscriptions increased significantly among 18 to 34-year-olds.
Deloitte recently found that car subscription was most popular with young drivers, with the flexibility and all-inclusive costs
28 per cent of this age group said they are interested in car subscriptions, compare to just one in five (18 per cent) of other age groups.
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: ‘Vehicle subscriptions appeal to younger consumers because they provide flexibility and choice.
‘They offer the advantages of having your own personal vehicle without the disadvantages of ownership.’
