Most affordable cars for premiums revealed

Younger drivers aged between 17 and 18 have the highest insurance premiums of all age groups in the UK. Photo: PA

The average cost of car insurance premiums is holding “steady” as the cost of living rises in the UK, a new study has suggested.

According to research from UK insurance firm Admiral (ADM.L), the average premium cost for UK car insurance in March was £529, a 0.1% increase on February’s average of £530.

As the invasion of Ukraine saw energy, food and fuel prices surge to record highs, drivers appeared to be looking for cheaper alternatives in March.

Admiral found the Ford Puma (F) to be the most affordable family car to insure, with average premiums of £307. This was closely followed by the Volkswagen UP! (VOW3.DE) at £308.

Ford Puma. Photo: Ford

The Ford Puma is the most affordable family car for incurance premiums, according to Admiral. Photo: Ford

For young drivers aged 17, the Volkswagen UP! was the most affordable car to insure, with an average premium of £711, with the Citroen C1 coming in second at £756.18.

The Škoda Citigo was the most affordable option for 17- to 25-year-olds, with premiums averaging £473.

Meanwhile, the Porsche Boxster was the cheapest sports car to insure for drivers who are seeking a luxury option, with premiums under the national average (£444.92). The BMW Z4 (BMW.DE), Mazda (MZDAY) MX-5 came in second and third at £445.10 and £472.51 respectively.

Porsche Boxster 2018 model, grey color and sporty look. Boxster is convertible car and with two seats. Very sporty look and grey color dominate on the photo. Car have very nice design and attractive look. Its sport car and made for younger population.

The Porsche Boxster was the cheapest sports car to insure for drivers who are seeking a luxury option, according to Admiral. Photo: Getty

The Nissan Qashqai (7201.T) entered the top 10 list of cheapest cars to insure, with premiums of £407, a 22% saving on the national average, according to Admiral.

Drivers who are conscious about the environment may need to spend a little extra, with the national average for electric cars coming in at £700. However there are affordable options with the MG5 (600104.SS) premium averaging £348, followed by the Peugeot 208 at £374 and the Volkswagen ID at £375.

Younger drivers have the highest premiums of all age groups, the data revealed, with those aged between 17 and 18 expected to see a 79% hike on the national average, with an average premium of £945.

Volkswagen up! Photo: Volkswagen

The Volkswagen UP! with an average premium of £711 is the most affordable option for 17-year-olds, according to Admiral. Photo: Volkswagen

Drivers aged 19 to 21 can expect a 46% increase, with average premiums of £770, while motorists between the ages of 51 and 60 have average premiums of just £407, the cheapest of all age groups.

“Age is one of the pricing factors and it can be expensive for a young person to get on the road as our index shows,” said Clare Egan, head of motor at Admiral.

Read more: Cost of living crisis: Six in 10 cutting back on essentials to make ends meet

“The reason younger drivers pay more for their insurance is because they are more likely to have an accident than older drivers and the accidents they have are more expensive too.

“One of the most effective methods for lowering insurance costs for young drivers is telematics or black box insurance. These small devices measure how you drive and reward safe drivers with discounted insurance.”

Average premium by age. Image: Admiral

Average premium by age. Chart: Admiral

Admiral said that while calculating insurance is not based on gender but on other criteria that reflects drivers’ behaviour, men should expect to pay 17% more for their premiums than women, with the March pricing figures showing men at an average of £573 compared to £474 for women.

The latest figures in the report are averages based on comprehensive cover car insurance new business sales made during March 2022.

Read more: UK making 100,00 fewer cars due to parts shortage

These are the average car insurance premiums across the UK:

Greater London — £712.33

South East — £498.47

South West — £453.34

Midlands — £551.78

North West & West Yorkshire — £573.05

East & North Yorkshire — £483.38

Channel Islands — £520.36

England — £541.50

Wales — £466.26

Scotland — £454.39

Northern Ireland — £552.94

Watch: How to save money on a low income