What Is The Average Car Insurance Cost in the UK?

Chloe Murphy 4 minutes Published: 14/10/2021

Car insurance is one of those things you can’t escape. Whether you’re driving a brand new Mercedes or a 10 year old Honda, you need to have car insurance.

It’s an essential for everyone, but often comes in at very different prices for different drivers. The cost can vary depending on a number of factors, with everything from your age to your experience influencing the premium you pay. 

In this article, we take a look at some of the average insurance costs in the UK, and what you can do to lower them.

Average cost overall

If you’re not clued up on how car insurance works, here’s a quick run down. You choose between one of three cover types (third party, third party fire and theft, or comprehensive) and then pay according to the likelihood that you’ll make a claim. 

The cost of insurance really varies, but the ABI found the average UK car insurance cost for 2021 was £436 (down £32 from the previous year). This was for drivers that selected fully comprehensive insurance.

However, this isn’t a figure you should necessarily expect to pay. Beyond the car you choose, there are so many aspects that influence the average insurance premium.

Average cost by age

If you’ve just passed your test, you’re probably all too aware of the difference that age can make to your insurance premium. As evidenced by data from Statista in 2020, the average car insurance costs are hugely impacted by age.

Age Premium
20 years old £851
25 years old £719
35 years old £639
45 years old £575
55 years old £468
65 years old £491
75 years old £752

As predicted, if you’re a new driver, things don’t look great. Twenty year olds have the highest premium at £851, and this is usually even higher if you’re younger.

However things start to look up as you get older. If you’re concerned about an impending mid-life crisis in your 50s, you’ll at least get the cheapest car insurance at an average of just £468

Unfortunately, approaching your twilight years can have a negative effect on cost. After the age of 65, insurance premiums start to steadily increase. Though older drivers haven’t been found to pose a greater risk, insurance companies associate slower responses with a higher chance of claiming.

Average cost by sex

Legally, insurance providers can’t base your insurance premium on your gender. So why is it that women’s car insurance is often cheaper?

From January 2018 until January 2020, MoneySuperMarket found that the cost for women remained between 23% and 29% less than the premiums for men. This is a fairly substantial amount, so you’re probably wondering why it’s allowed. 

Well, with further investigation, it appeared that the disparity wasn’t quite how it looked. Men were found to be in more occupations with higher average premiums, drove more expensive cars, and selected ‘social only’ use more frequently, which often caused higher premiums. 

What other factors affect price?

In addition to your age and the car make and model you choose, there are various other factors that can affect your price.

  • Where you live - Living in an area that statistically faces higher rates of crime unfortunately classes you as high risk for insurance companies, and you’re going to have a higher premium.
  • Your occupation - Having an occupation where you’re frequently driving (and therefore more likely to make a claim), you face higher costs as a result of your risk.
  • Driving history - Driving history unfortunately plays a large role in your insurance cost. If you’ve made a number of claims, whether you were at fault or not, it’s going to increase your premium.
  • How long you have been driving - Insurance companies favour experience. If you’re a new driver, you’ll have the highest cost. A few years down the line you can expect it to decrease.

How to lower it

When you factor in car running costs, car maintenance, and tax, the price of insurance can start to look like a blow to your budget. If you’re wary of costs piling up, lowering your insurance quote can be a huge relief. 

Fortunately, there are a number of ways that you can get your insurance cost down. You can:

  • Shop around annually for quotes.
  • Choose a car model which falls under a low insurance group. 
  • Take out a higher excess.
  • Get a black box.

These are just some of the many ways you can look to lower your costs, but one of the most important to be aware of is changing your car insurance. Insurers regularly increase your rates, so letting it auto-renew could mean losing out on potential savings. 

For more top tricks and tips, our post on why car insurance is so high covers more of these in depth.

Conclusion

Looking at insurance costs for the first time can be overwhelming. If you’re a new driver and looking for a modern drive that won’t break the bank, check out some of our best first cars, or cars for 17 year olds.

Leasing a car and wondering, “Do lease cars include insurance?” Don’t forget that you still need to get a quote like you would with any other vehicle. You can even get add ons like lease gap insurance if you’re worried about covering any costs. Just read through our blog ‘Is Gap Insurance Worth It?’ to see if it’s right for you.