The Average Cost of Car Insurance in the UK


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By Cai Bradley
Updated on Friday 5 June 2020

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How much does car insurance really cost? Here’s a breakdown of the average price of cover and how it can differ depending on various factors.

Car insurance is an expense that we could all do without, but it is a must-have due to the fact that it is a UK legal requirement and that it helps protect us against the potential costs associated with the aftermath of a road traffic collision.

Finding out what the true average cost of car insurance is can be tricky – mainly because it varies so much between individuals and companies – but our guide will help give you an idea of how much you could be paying for cover.

In this article:

How much does car insurance cost?

The Association of British Insurers (ABI) reported in 2019 that the average cost of comprehensive car insurance was £485 per year, as referred to by the Money Advice Service.

The average cost of car insurance varies considerably depending on where you get your information from – for example, Statista have stated that it is £692, while Confused.com previously set it at £827.

Average prices will rise and fall depending on the market, so it’s important that you get your own quotes from a variety of different providers and comparison sites to get a rough estimate of how much you may be required to pay.

The average cost of manual and automatic car insurance

A 2020 report by This is Money – using data from MoneySupermarket – found that the average cost of manual car insurance is £465.94 per year, while automatic vehicles typically cost around 20% more at an average of £560.01 per year.

Automatic vehicles are more expensive to insure (in most cases) due to their costly parts – for example, an automatic gearbox can cost up to a thousand pound more than the manual equivalent.

This means that, in the event of a car accident claim, insurers would be required to pay out more money to cover the cost of repairing automatic vehicles.

Read more in our full guide: Is Insurance Cheaper for Automatic Cars?

How is car insurance calculated?

The average cost of car insurance for an 18-year-old will, of course, be different to the average cost of cover for someone who is older and more experienced, and there are dozens of other factors that are taken into account when determining how much you will pay for your insurance.

Some of the most important factors considered when calculating your car insurance cost include:

Read more: How is Car Insurance Calculated?

The type of vehicle you drive has a monumental impact on the price you pay for cover, so be sure to think about how much it might cost you for insurance before buying or leasing a new motor.

Read more: The Cheapest, Best Cars to Insure

Is car insurance more expensive for men or women?

Years ago, insurers traditionally offered cheaper car insurance to women, but new regulations mean that they can no longer use gender as a factor when calculating someone’s premiums.

Data shows that men still pay more for cover on average, but the gender gap has decreased significantly in recent years and their sex is no longer taken into account.

The average cost of car insurance by age in the UK

As previously mentioned, the price you pay for car insurance depends on a variety of factors, with your age and driving experience believed to be two of the most important.

Generally, the younger you are, the more expensive your premiums will be, but it’s also important to remember that the cost of cover usually spikes again once you reach your 60s and 70s.

The average price of cover by age is as follows, according to Statista:

Age

Average cost

20s

£1,036

30s

£832

40s

£692

50s

£600

60s

£687

The above figures are an average of car insurance quotes from a range of UK insurance providers, assuming five years’ driving experience and a five-year no-claims bonus.

Average cost of car insurance for a 17-year-old

The cost of car insurance for a 17-year-old or a learner driver will inevitably be higher than someone who has been driving for some time, as they pose a higher risk due to their lack of experience on the road.

In 2020, MoneySupermarket reported that those aged between 17 and 19 pay an average of £917 for an annual, fully comprehensive policy.

This is, of course, cheaper than cover for those in their 20s according to the data above from Statista, which reiterates the fact that the figures will vary considerably between different sources.

Read more: How to Get the Cheapest Learner Driver Insurance

Why is car insurance more expensive for young drivers? Premiums are set by insurers using statistics, and because these statistics show that younger and less experienced drivers are more likely to have an accident, they usually face higher costs as a result.

Is car insurance for over 50s always cheaper?

It’s true – to a point – that motor insurance typically becomes cheaper as you age, especially if you build up a good no-claims discount, with those aged between 40 and 50 often being offered the best deals.

Read more: Car Insurance for Over 50s

It’s also true that your car insurance could increase once again as you head into your 60s and 70s.

Insurers say that this is because statistics show that drivers become more likely to have an accident as they reach such an age, perhaps due to their increased reaction times or potential health issues, such as eyesight.

Read more: Is There an Age Limit for Driving in the UK?

How to get cheap vehicle insurance

There are a few things that you can do to get cheaper car insurance, including the following:

Here at Compare UK Quotes, we offer a wide range of articles on all-things insurance and personal finance to help you. Browse our related articles for more information on relevant topics:


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