100+ UK car insurance statistics, 2024

In the UK, car insurance premiums have increased primarily due to a rise in claims costs, driven by factors such as higher repair expenses, increased personal injury claims, and inflation.

As with many industries, the rising cost of living has had a detrimental effect on the price of car insurance.  As insurers cope with growing pressures like rising repair costs and increasing second-hand car prices, many companies are increasing their premiums to keep their profits out of the red.

Despite the volatile market, taking the time to shop around and compare prices will go a long way to helping you find a car insurance plan that’s competitive and works for you.

To get cheap car insurance, we recommend comparing quotes from multiple providers, maintaining a good driving record, opting for a higher excess and taking advantage of discounts for low mileage or installing safety devices.

To check your car insurance expiry date, review your insurance policy documents or contact your insurance provider for the full details.

The voluntary excess on car insurance is the amount you agree to pay out of pocket for a claim before your insurer covers the remaining costs. It is typically chosen to reduce the premium.

A no-claims bonus is a discount on car insurance premiums awarded to drivers who have not made any claims on their insurance policy for a consecutive number of years.

Young drivers pay more for car insurance because they’re considered to be high-risk drivers. As these drivers typically have less experience on the road, they’re considered more likely to be involved in accidents and therefore more likely to make a claim.

Younger drivers are also statistically more likely to be involved in accidents, with around 25% of insurance claims made by drivers under 25.

The latest figures from the Association of British Insurers (ABI) found that UK drivers paid an average of £436 per year on their car insurance in Q3 2022. This represented a rise of nearly 2% from Q3 2021 but was more than 5% less than the same period in 2020.

Car insurance prices can vary substantially from person to person and company to company. Nevertheless, there are measures you can take that should help you reduce the cost of your car insurance.

Firstly, most insurers will offer you a more cost-effective plan if you’re doing your best to keep your car away from vandals and thieves. As such, parking your car in a garage or driveway overnight can have a big impact on your annual or monthly car insurance premiums.

Cars that drive fewer miles typically pay less for car insurance, so limiting your mileage is another effective way to keep your costs down. It’s also worth noting that insurance premiums can vary wildly based on the type of car, so researching the average insurance costs when buying a car can save you some money down the road.

Finally, shopping around and comparing insurance costs before committing to one plan is an excellent way to ensure you get the best deal on your car insurance. Price comparison sites like Uswitch compare car insurance plans from the most prominent outlets to help you to find the best deal to suit you.

Excess is the amount you have to pay when making a car insurance claim, regardless of whose to blame.  The excess is typically pre-agreed when taking out your insurance policy and will vary based on the company and factors such as your age, car, and driving history.

There are two types of car insurance excess: compulsory and voluntary. Compulsory excess is the type pre-determined by your insurance company and cannot be changed. 

Voluntary excess is the amount you choose to pay on top of your compulsory excess. While a high voluntary excess comes with a risk of higher payments in the event of a claim, choosing to pay a higher voluntary excess will usually result in you paying less on your monthly insurance premiums.

A no-claims bonus is a car insurance discount earned for every year of driving without making a claim. Your no-claims discount builds up with each claim-free year, so the longer you go without making a claim, the bigger your discount will be. 

The value of no-claims discounts varies depending on the insurer, but they can be as much as 30% off for one claim-free year and 60% off for five claim-free years.

On average, yes. While women have typically paid less than men for car insurance on average, a recent EU directive prohibiting car insurance companies from using gender as a factor in their risk assessment forms was expected to narrow the price gap between men and women. 

Despite this, recent UK car insurance statistics show that women continue to pay substantially less than men, with a study from Admiral finding their male drivers were paying an average of around £140 more per year for car insurance.