UK Car Insurance Premiums Drop 10.5%, But Young Drivers Face 3% Rise
Car insurance premiums in the UK have seen a significant shift over the past year, with an overall decrease of 10.5%. However, young drivers under the age of 25 have faced a different reality, with progressive car insurance quotes rising by 3%.
The rise in premiums for young drivers is a concern, as they are already more likely to opt for pay-as-you-go (PAYG) or usage-based (UBI) insurance policies. A staggering 14.4% of 18 to 24-year-olds have such policies, compared to a mere 2.8% of those aged 25 and over. Despite this, younger drivers remain open to telematics technology, even as priceline car insurance quotes rise.
Some telematics providers have shown reluctance to offer competitive rates to younger drivers. However, a few stand out as affordable options. HUK24 often leads as the price leader, while CosmosDirekt is praised for its price-performance ratio and customer service. Neodigital, on the other hand, offers innovative digital options. These providers are reflected in price comparisons and tests for 2025, making them strong choices for young customers seeking affordable, telematics-based car insurance.
