Car insurance costs fall, but London drivers still pay the most
Car insurance prices have fallen across the UK, offering some relief to motorists after a sharp rise in 2023. According to data from comparison site Quotezone.co.uk, the average cost of car insurance in the fourth quarter of 2024 dropped to £769, down from £885 in the same period the previous year.
The decline comes as drivers face increasing financial pressures from rising repair costs, car tax increases and the expansion of low-emission zones. Despite the overall reduction, premiums remain high in certain areas, with London motorists paying the most, averaging £1,144 in December.
Drivers in the West Midlands, Yorkshire and North West England also faced higher-than-average premiums, all exceeding £780. Meanwhile, those in the South West of England paid the least, with an average cost of £566 in December.
Insurance experts suggest the downward trend could continue into 2025 but are advising motorists to take steps to keep their costs as low as possible. They recommend checking policy details for accuracy, as factors such as age, job title, mileage and overnight parking locations can impact premiums.
Drivers are also being reminded that modifications, including vehicle branding, spoilers and alloy wheels, must be declared. Failing to do so could invalidate a policy, leaving motorists without cover when they need it most.
Greg Wilson, CEO and car insurance expert at Quotezone.co.uk, said: “At a time when so many are struggling to keep budgets in place, the news that insurance premiums are starting to come down in price comes as much-needed relief.
“Young drivers in particular often pay more for their premiums as they have less experience on the roads and are statistically more likely to have an accident. However, it's great to see these decreases in cost apply to the youngest drivers on the road as well. 17–24-year-olds were paying an average of £2130 in October, versus £1986 in December.
“While we hope the lower insurance premiums highlighted in the final quarter of 2024 continue throughout 2025, we also want to make sure motorists are keeping their insurance premiums as low as they possibly can.
“It’s important to raise awareness of the most surprising factors drivers might not be aware of to help keep their costs down. It’s also crucial to make sure drivers are being quoted correctly for the policy they need and against accurate factors such as their car use and mileage.
“It could simply be that a driver has moved house or job or hasn’t updated their mileage with their insurance provider, but there are many factors that can inflate and even invalidate an insurance policy if the details are inaccurate.
“In order to help keep costs as low as possible and ensure drivers are fully covered if anything were to go wrong - it is important to keep the provider updated and review our tips for areas where savings can be found, such as looking at the day and time to make a purchase.”
