The cost of vehicle insurance in the UK has undergone significant shifts in recent years. After peaking in 2023, premiums have generally trended downwards through 2024 and into 2025, marking a period of welcome relief for UK motorists.
According to Quotezone, as of mid-2025 the average annual car insurance premium in the UK stands at approximately £665. This reflects a steady decline from highs approaching £885 in late 2023.Quotezone Over the first and second quarters of 2025, average premiums ranged from £651 in Q1 to £665 in Q2, demonstrating relative stability.Quotezone
Confused.com’s Price Index paints a similar picture—reporting an average cost of £757, down £144 (16%) compared to 12 months earlier, with the most recent figure being the lowest in over two years.Confused.com As of Q4 2024, premiums were around £834, a sharp drop from £995 in Q4 2023.RSM UK
Meanwhile, data from the Association of British Insurers (ABI) shows a more substantial drop: for April to June 2025, the average motor insurance premium was £562, down from £622 over the same period in 2024—a real-terms fall of £60.ABIStratford Heraldtheinsurer.com
Regional differences remain notable. Quotezone data reveals that London remains the most expensive region, with average premiums around £991, while the South West is the cheapest at approximately £502—a difference of around £489.Quotezone
Confused.com’s figures put Inner London even higher, averaging £1,185 per year, though this marks a notable drop from previous levels.Confused.com
Premiums heavily depend on age. Young drivers continue to face higher costs, though these have also decreased. For example, 17-year-olds now pay around £2,051, down substantially over the past year.Confused.com Quotezone data extends this trend—showing 17-24-year-olds paying around £1,252 by June 2025, down from over £2,130 just months prior.Insurance EdgeQuotezone On the other hand, older drivers pay much less—those over 65 average just £423, representing significant savings year-on-year.Quotezone
Several factors are driving the recent reductions in premiums:
| Category | Current Average Cost | Trend / Notes |
|---|---|---|
| National average | £562–£757 annually | Down notably from 2023–2024 |
| London | ~£991 (Quotezone), £1,185 (Confused.com) | Still highest regionally |
| South West England | ~£502 (Quotezone) | Lowest-cost region |
| 17-24 year-olds | ~£1,252–£2,051 | High but falling sharply from previous highs |
| 65+ year-olds | ~£423 | Significantly lower premiums |
The trend of decreasing premiums appears robust—monthly top quotes fell for the seventh straight month as of July 2025, with YoY declines around 16% and median premiums down to £438 (top-five quotes).Insurance Business UK Meanwhile, the ABI’s statement that insurance premiums have “fallen for a second consecutive quarter” underscores that price relief is continuing into mid-2025.Insurance TimesStratford Herald
However, persistent issues such as theft, parts shortages, complex repair needs for EVs, and high-value injury claims mean that insurers’ costs—and thus premiums—may face pressure upward in the future unless costs fall or efficiency improves further.
