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Average Car Insurance Cost UK 2026 — Premiums by Age, Region and Car

How much car insurance costs in the UK in 2026. Average premiums by age, driving experience, location, car type, and tips to reduce your car insurance costs.

Insurance information is general guidance only. Insurance products are regulated by the FCA. Policy terms vary between providers — always read the policy document before purchasing.

Car insurance is a legal requirement for all drivers in the UK. Here’s what you can expect to pay in 2026 and how to get the best deal.

Average Car Insurance Premiums 2026

UK Average by Cover Type

Cover Type Average Annual Premium Monthly Equivalent
Comprehensive £635 £53
Third Party, Fire & Theft £720 £60
Third Party Only £780 £65

Note: Third party only is often MORE expensive because it’s typically bought by higher-risk drivers

Year Average Premium Annual Change
2020 £465 -5%
2021 £420 -10%
2022 £480 +14%
2023 £560 +17%
2024 £615 +10%
2025 £640 +4%
2026 £635 -1%

Car Insurance by Age

Age is the single biggest factor affecting premiums.

Average Premium by Age Group

Age Average Premium vs UK Average Monthly Cost
17 £2,150 +239% £179
18 £1,920 +202% £160
19 £1,650 +160% £138
20 £1,420 +124% £118
21 £1,180 +86% £98
22 £980 +54% £82
23 £850 +34% £71
24 £750 +18% £63
25-29 £620 -2% £52
30-39 £480 -24% £40
40-49 £420 -34% £35
50-59 £380 -40% £32
60-69 £350 -45% £29
70-79 £380 -40% £32
80+ £520 -18% £43

Young Driver vs Experienced Driver

Scenario 18-Year-Old 45-Year-Old Difference
Same car (VW Polo) £1,850 £320 £1,530
Same postcode (Birmingham) £2,100 £380 £1,720
With 5 years NCB £1,250 £280 £970
With black box £1,350 £320 £1,030

Car Insurance by Region

Average Premium by Area

Region Average Premium vs UK Average
Inner London £1,020 +61%
Outer London £850 +34%
Greater Manchester £765 +20%
West Midlands £720 +13%
West Yorkshire £680 +7%
Merseyside £720 +13%
South Yorkshire £640 +1%
UK Average £635
East of England £565 -11%
South East £580 -9%
South West £495 -22%
East Midlands £560 -12%
North East £540 -15%
Wales £510 -20%
Scotland £480 -24%
Northern Ireland £550 -13%

Most Expensive Postcodes

Postcode Area Location Average Premium
E (East London) Stratford, Hackney £1,180
IG (Ilford) Barking, Dagenham £1,150
RM (Romford) Romford, Rainham £1,080
UB (Southall) Ealing, Hillingdon £1,050
NW (North West London) Camden, Harrow £1,020
M (Manchester) Manchester city £980
B (Birmingham) Birmingham city £940
L (Liverpool) Liverpool city £920
LS (Leeds) Leeds city £780
S (Sheffield) Sheffield city £720

Cheapest Postcodes

Postcode Area Location Average Premium
EX (Exeter) Devon £420
TA (Taunton) Somerset £430
TR (Truro) Cornwall £435
PL (Plymouth) Devon £440
SA (Swansea) South Wales £450
IV (Inverness) Highlands £420
PA (Paisley) West Scotland £435
DG (Dumfries) Borders £410

Car Insurance by Vehicle

Average Premium by Insurance Group

Insurance Group Example Cars Average Premium vs Group 10
1-5 Fiat 500, Citroen C1, Toyota Aygo £380 -35%
6-10 VW Polo, Ford Fiesta, Vauxhall Corsa £480 -18%
11-15 Ford Focus, VW Golf, Audi A1 £580 Baseline
16-20 BMW 1 Series, Audi A3, Mercedes A-Class £690 +19%
21-25 BMW 3 Series, Audi A4, Mercedes C-Class £820 +40%
26-30 BMW 5 Series, Audi A6, Mercedes E-Class £980 +68%
31-35 Porsche Boxster, BMW M3, Audi S3 £1,250 +115%
36-40 Porsche 911, BMW M5, Mercedes AMG £1,650 +184%
41-50 Ferrari, Lamborghini, McLaren £3,500+ +500%+
Car Insurance Group Average Premium (30-yr-old)
Toyota Aygo 2 £340
Fiat 500 1.0 4 £365
VW Up 3 £350
Citroen C1 3 £345
Vauxhall Corsa 1.2 7 £380
Ford Fiesta 1.0 8 £395
VW Polo 1.0 8 £390
SEAT Ibiza 1.0 7 £375
Ford Focus 1.0 11 £430
VW Golf 1.5 14 £480
Audi A3 1.5 16 £520
BMW 1 Series 18 £560
Mercedes A-Class 19 £580
Tesla Model 3 48 £1,100

Electric vs Petrol — Insurance Comparison

Car Type Petrol Version Electric Version EV Premium
VW Golf vs ID.3 £480 £620 +29%
Mini Cooper vs Mini Electric £510 £650 +27%
Hyundai Kona petrol vs EV £420 £580 +38%
Peugeot 208 vs e-208 £395 £520 +32%

EVs cost more to insure due to higher repair costs and battery replacement risks

No Claims Bonus Impact

Discount by Years of NCB

Years No Claims Typical Discount Premium Example (£800 base)
0 years 0% £800
1 year 30% £560
2 years 40% £480
3 years 50% £400
4 years 55% £360
5+ years 60-65% £320
9+ years (max) 65-70% £280

Protecting Your NCB

NCB Protection Type Typical Cost What It Covers
Step-back protection +£20-£40/year NCB reduces by 1-2 years instead of resetting
Full protection +£30-£60/year NCB preserved after one claim

Note: NCB protection protects your discount, not your premium — you can still face increases after a claim

Voluntary Excess Impact

Premium vs Excess Trade-Off

Voluntary Excess Typical Premium Saving vs £0 Excess
£0 £700
£100 £665 -5%
£250 £620 -11%
£500 £560 -20%
£750 £515 -26%
£1,000 £480 -31%

Calculation: If you’re paying £140/year less with £500 excess vs £0 excess, and you’re unlikely to claim for 4+ years, the higher excess pays off.

Ways to Reduce Car Insurance

Biggest Savings

Method Typical Saving Best For
Shop around every renewal £280 (average) Everyone
Black box/telematics policy 20-40% Young drivers
Add experienced named driver 10-20% Young drivers
Pay annually instead of monthly 15-25% Everyone
Increase voluntary excess 10-30% Careful drivers
Reduce annual mileage 5-15% Low mileage drivers
Park in garage or driveway 5-15% Homeowners
Multi-car policy 10-15% Households with 2+ cars
Choose lower insurance group car 20-40% Anyone buying a car

Black Box Insurance — How Much You Save

Driver Age Standard Premium Black Box Premium Saving
17 £2,150 £1,350 £800 (37%)
18 £1,920 £1,250 £670 (35%)
19 £1,650 £1,100 £550 (33%)
20 £1,420 £980 £440 (31%)
21 £1,180 £850 £330 (28%)

Monthly vs Annual Payment

Payment Method Premium Interest/Fees Total Cost
Annual (lump sum) £635 £0 £635
Monthly (typical APR 15-25%) £635 £70-£120 £705-£755

Paying monthly typically costs 10-20% more — that’s £70-£120 wasted on interest.

Special Circumstances

Modifications and Insurance

Modification Premium Impact
Alloy wheels +5-10%
Body kit +10-20%
Engine tuning +50-100%
Lowered suspension +10-25%
Window tints +5-15%
Spoiler +5-15%
Sports exhaust +15-30%
Dashcam (some insurers) -5-10%

Convictions and Claims

Item Premium Impact Duration
Speeding (SP30) +5-15% 3 years
Speeding (SP50) +15-30% 3 years
Drink driving (DR10) +50-100%+ 11 years
Fault claim +20-50% 5 years
Non-fault claim +5-15% 3 years
Theft claim +10-20% 3 years

New Driver Insurance Options

Option How It Works Typical Cost
Learner driver policy Covers you while learning £150-£300/year
Named driver on parents’ policy Builds NCB in your name (some insurers) Varies
New driver specialist insurer Veygo, Marmalade, Admiral 10-20% less than mainstream
Short-term insurance Day/week/month cover £10-£30/day

When to Shop Around

Timing Advice
3-4 weeks before renewal Best time to get quotes
Auto-renewal date Cancel before this or you’ll be charged
After passing test Get quotes immediately
After moving house Postcode change may reduce premium
After buying new car Shop around, don’t just transfer
After any change Job, mileage, parking — always re-quote

Sources

  1. ABI — Motor insurance statistics
  2. MoneySuperMarket — Car insurance price index