Automatic licence holders pay 84% more for car insurance
Fri, 12 Sept 2025
Motorists with an automatic driving licence pay an average of 84% more for car insurance than manual licence-holders, new research has revealed.
The surprising difference in premium is being described as a ‘hidden cost’ that risks hitting millions of motorists as the UK moves away from cars with a manual gearbox.
The shift towards electric cars is the key reason for this, but even automatic petrol cars are are on the up as car manufacturers pull models with manual gearboxes from sale.
Quotezone figures show that the average car insurance premium for a driver with a manual licence was £696 during the second quarter of 2025.
During the same period, the average premium for automatic driving licence-holders was an eye-watering £1296.
The analysis of more than 100,000 car insurance policies revealed the 84% difference was only an average, too. In April, it peaked at a heady 91%.
The growth in EVs is leading to a rise in learner drivers opting for automatic-only licence. The number rose 123% in just a single year.
Drivers are now being warned to continue learning on a manual car, even if they plan only to drive autos or EVs in the future.
The difference in car insurance prices is, says Quotezone, due to automatics boasting more advanced features and parts, from complex gearboxes to integrated electronics, which cost more to buy and fix.
"Drivers should be aware that insurers often view them as higher risk, and may charge higher rates," says Quotezone CEO Greg Wilson.
"Our data shows that in April of this year, automatic drivers were paying £647 a year more for their insurance policies than manual drivers."
For those with an automatic-only driving licence, this makes it particularly important to seek multiple quotes before renewal. "There are always savings to be had," reckons Wilson. "The key is to shop around."
