Most expensive areas for young driver car insurance

Young drivers living in London are forking out almost twice as much for car insurance than those living in South West England – new data has shown.

Research by insurance comparison experts at Tiger.co.uk has shown that the national average insurance costs for drivers aged 17-24 fell significantly over the course of 2024, from a record high of £2,951 in January down to £1,986 in December.

But the disparity in insurance premiums across the different regions of the UK remains stark, with a typical young Londoner paying an average of £3,229 a year – a staggering £1,441 more than the same age group in South West England.

Motorists in Northern Ireland are the cheapest overall for annual cover, paying £238 less than the UK average.

Drivers aged 17-24 continue to face the highest average premiums out of all age groups, paying £1,737 on average more for their car insurance when compared to 45–65-year-olds. In London, young motorists can expect to pay over 73% more than drivers aged 45 to 64 in the same area. 

When combined with the steep costs of learning to drive, purchasing a first car and paying for fuel and tax, young drivers face significant obstacles when it comes to motoring.

Tiger.co.uk has crunched the numbers on the UK-wide car insurance index to reveal the average cost of insurance across each region, helping young drivers to ensure they are getting the most competitive prices.

Ian Wilson, car insurance expert and Managing Director at Tiger.co.uk said: “It is good news for drivers of all ages that the average cost of car insurance has fallen to £769 in the last quarter of 2024. This represents an average saving of £116 when compared to the same period in 2023.

“Despite these reductions, premiums for those in the 17-24 age group remain 57% per cent higher than at the start of 2023. This is especially concerning for young motorists in areas like London, the West Midlands and North West, where insurance costs are the most expensive.

“Apart from high insurance rates, young drivers continue to face other financial challenges that impede their ability to get on the road, including costs associated with learning to drive, taking out car tax and buying the vehicle itself.

“Thankfully, there are a number of steps young drivers can take to bring down the cost of their insurance premiums, such as where the car is parked overnight and adding an additional driver to the policy. By following these tips and checking our car insurance index to see the average insurance rates in their area, young drivers can start to make some real savings.”

Tiger tips to help young drivers cut insurance costs:

Park in a safe place

Insurance providers consider where you park your car when assessing risk, so drivers should (where possible) make use of their garages or driveways for overnight parking, rather than parking in the street. Secure locations such as these are considered safer and can lead to reduced premiums.

Fit a telematics or ‘black box’

Newer drivers could save money by opting for a telematics or ‘black box’ insurance policy. This involves having a small device fitted to your car to collect driving data, which can help the insurer analyse risk and provide a more accurate quote. By demonstrating safe driving habits, young drivers can be rewarded with savings on their policy.

Add a more experienced driver

Young drivers can save over £350 on their insurance through having a low-risk named driver – typically a parent – added to their policy, particularly if they are experienced and have a clean driving record. We found that the greatest reduction in car insurance premiums came from adding female family members to a policy over male family members*. 

Always shop around

Never allow a policy to auto-renew without shopping around for a better deal first. Tiger.co.uk helps users right across the UK compare and find savings every year on car insurance. 

Click here to view the full index of car insurance costs for all age groups across the UK.  

References:

* https://www.quotezone.co.uk/car-insurance/guides/how-much-does-it-cost-to-add-a-driver-to-car-insurance/

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.