Ahead of the summer driving season, new data from MoneySuperMarket reveals that the price of car insurance for new drivers has surged by 31% since 2021.
In 2025, the average annual premiums for a driver with a newly acquired license (under two years) come in at £1,640, compared to £1,131 in 2021.
MoneySuperMarket’s latest report reveals that the average cost to insure an experienced driver currently is £782, making it roughly £850 more a year to insure a new driver than an experienced driver in 2025.
The cost increase hasn’t gone unnoticed by new drivers. According to MoneySuperMarket’s latest report, 80% of newly qualified drivers say they include insurance costs when it comes to budgeting for a new car, with the majority (54%) assuming they’ll need to budget £20,000 for their first car and insurance.
However, the good news for new drivers is the data also shows the cost of getting on the road is significantly less than they imagine, with the average vehicle value for new drivers in 2025 landing at around £4,600.
Location plays a major role in new driver insurance premiums, and thanks to the combination of lower-risk roads, less traffic, low theft rates and fewer insurance claims made, areas like Llandrindod Wells top the UK’s cheapest places to insure new drivers.
Cheapest Places for New Driver Insurance
MoneySuperMarket’s new research also reveals the most common cars for new drivers; according to their survey of 1,000 new drivers manufacturers of popular smaller hatchback models such as Nissan, Kia and Peugeot are losing ground to the likes of Toyota and Audi.
