Young Londoners pay nearly 100% more for car insurance than South West

Young drivers have been told how they can reduce car-related costs, as insurance premiums soar to £3,000 for 17–24-year-olds. 

Car insurance experts from Quotezone have revealed the true cost of driving for the UK’s youngest motorists, revealing average costs for 2024 as high as £3750 in certain areas. 

Young motorists have been hit the hardest by soaring insurance costs, as the cost-of-living crisis spiked the premiums by more than 25% year on year, according to the ABI* – who look at prices paid for policies rather than estimated quote values.

MONTH	AGE 17-24
Jan-24	£2,951.58
Feb-24	£3,055.66
Mar-24	£3,006.11
Apr-24	£3,024.19
May-24	£2,901.91

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The sky-high cost of learning to drive combined with inflated insurance costs is making it harder than ever for young motorists to get on the roads. 

Because of this, the saving experts at Quotezone have created a full car insurance index to help drivers review prices in their area and find savings.

The data reveals significant differences in insurance costs depending on where motorists live, with young Londoners paying 97% more for cover compared to young drivers in the South West of England, that’s £1847 more, on average.

Also included in the top three most expensive regions are North West England and Yorkshire, where young drivers are paying more than £2,900 for cover.

REGION	AGE 17-24
London	£3,750.67
North West England	£2,987.96
Yorkshire	£2,903.73
West Midlands	£2,863.84
North East England	£2,508.17
East Midlands	£2,481.54
South East England	£2,347.50
East of England	£2,290.02
Scotland	£2,259.53
Wales	£2,244.92
South West England	£1,903.95

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The team have shared some finance hacks to help young drivers claw back savings.

To help keep the insurance costs down, drivers are encouraged to pay annually if possible, improve vehicle security and add an experienced driver to the policy.

Quotezone.co.uk CEO and car insurance expert Greg Wilson said: “Unfortunately, the youngest drivers across the country have been hit the hardest by insurance costs that don’t look like they will come down anytime soon. 

“This is making it harder than ever for young drivers to get on the road, and is discouraging for parents and young people alike when it comes to booking driving lessons and tests. 

“On top of the costs associated with learning to drive, taking out car tax and buying the vehicle itself – the new cost of insurance can be concerning. This is especially the case for young drivers in areas like London, the North West and Yorkshire where insurance costs are at their highest. 

“Young drivers normally have to pay more for their premiums as they have less experience – something insurance providers use to base their risk analysis on and determine costs. However, in recent years insurance costs have soared, leaving drivers considering if they can afford to drive at all.

“Hopefully our tips will help young drivers really start to look at their insurance policies and explore where they can find savings. Simple tweaks such as job title, the time you purchase and how you pay, can all help cut costs.”

Here’s how young drivers can find savings;

1.Check your job title

Job titles often affect the overall premium price, a tweak to your title could help you reduce your premium so try quoting with variations – just make sure the title is still accurate and describes the job you do, incorrect information could invalidate your insurance. The Quotezone estimator tool can help drivers check the various costs per job title.

2.Park in a safe place

If possible, drivers should make use of their garages, driveways or carports for overnight parking. This can keep premium costs down because the safer you can keep your car, the cheaper it is to insure, likely a reduction of at least £140 if you can move your car from the roadside to a private driveway overnight.

3.Opt for telematics or a black box

A telematics policy, or black box insurance starts collecting driving data immediately which can help the insurer with their risk analysis. This way young drivers can demonstrate their safe driving and increase their chances of getting a competitive premium price.

4.Add another driver

Adding a low-risk driver to your policy could bring down the premium costs especially if the other driver is experienced and has a clean record – just make sure the main driver is actually the one who drives the car the most or you could be charged with insurance fraud.

5.Shop around

Never let a policy auto-renew, even if your provider was the cheapest option for you last year it doesn’t mean they will be the cheapest this year, always shop around and compare products and don’t be afraid to switch providers, it’s an easy process which could lead to substantial savings. 

6.Pay annually

If you can, it’s best to pay the annual premium all in one go to knock cash off your policy. Paying annually is normally cheaper because there is no interest to pay.

7.Check when to buy

The sweet spot for renewing a car insurance policy is 15 to 24 days before the policy is due to start, as data reveals drivers purchasing during this time save themselves an average of 33-45%.

8.Add security measures

Many insurance providers will indicate that adding a tracker and having a dashcam are price sensitive questions, meaning there could be savings to be had.  It’s worth doing a quick quote with and without the additional items to check if they are worth the investment.

Quotezone.co.uk helps over 4 million users in the UK compare and find savings every year on all sorts of products, from affordable car insurance for new drivers to truck insurance.

Average UK car insurance per age per month

MONTH	17-24	25-34	35-44	45-64	65+
Jan-24	£2,951.58	£1,584.26	£1,095.96	£647.33	£524.17
Feb-24	£3,055.66	£1,652.04	£1,137.59	£670.80	£530.38
Mar-24	£3,006.11	£1,661.88	£1,137.22	£685.04	£535.37
Apr-24	£3,024.19	£1,617.94	£1,110.88	£665.28	£529.79
May-24	£2,901.91	£1,606.31	£1,118.03	£659.40	£525.78

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References: 
*https://www.abi.org.uk/news/news-articles/2024/1/motor-insurance-premiums-continue-to-rise-as-insurers-battle-costs/#:~:text=Costs%20are%20up%2012%25%20on,the%20fourth%20quarter%20of%202023.