Car insurance hits two-year low

2nd June 2025

UK drivers are now paying the lowest car insurance premiums in two years, according to new data from Go.Compare. 

The comparison site’s latest pricing analysis reveals that the average fully comprehensive car insurance quote fell to £413 in April 2025 – a drop of £62 from the previous month and the lowest level since March 2023.

This decrease marks the second consecutive month of falling premiums, with Go.Compare suggesting the market is finally stabilising after two years of steep increases. In 2023 alone, insurance costs rose by over 50% for many drivers amid inflation and parts shortages.

Drivers aged 17 to 24 saw the most significant reductions. The average quote for this group dropped from £1,287 in March to £1,169 in April – a fall of £118. However, they still pay nearly three times more than the national average.

The figures come from over five million quotes generated on Go.Compare’s platform over the past 12 months. Insurance expert Ceri McMillan said the April figures “suggest the market is beginning to settle after a turbulent couple of years.”

Despite the drop, Go.Compare warns that prices could rise again and urges consumers not to assume renewal prices are the cheapest option. McMillan added: “Shopping around remains the best way to ensure you’re getting a competitive deal.”

Older drivers in their 50s and 60s are now seeing average premiums below £300, while drivers in London still face the highest quotes nationally, averaging over £600.

Although the recent price drops are a welcome relief, experts caution that external factors such as regulatory changes, claims trends, or economic instability could push prices up again later in the year.