Honest John News Tax & Insurance

Cheapest places for new driver insurance revealed

Richard Aucock
Fri, 22 Aug 2025

The Isle of Lewis in Scotland is the cheapest area in the UK for new drivers to insure a car – but even there, they’ll be paying over £1000.

The premium of £1028 is £22 cheaper than new driver premiums in Llandrindod in Wales. That's according to a recent MoneySuperMarket report.

Dorchester is the cheapest place in England, with annual premiums of £1276, closely followed by Bath on £1281. Worcester and Gloucester come in at around £1300.

Cheaper places share characteristics including lower-risk roads, less traffic, low theft rates and fewer insurance claims.

The average annual premium for a driver with a newly-acquired licence is an eye-watering £1640, reveal the latest figures from Moneysupermarket. This is up 21% since 2021.

With the average cost to insure an experienced driver coming in at £782, it costs around £850 – more than double – for a new driver to get car insurance in 2025.

The MoneySupermarket report found new drivers are budgeting accordingly, factoring in car insurance costs when planning for a new car.

More than half assume they’ll need to budget £20,000 for their first car and insurance.

However, the reality is not that bad, adds MoneySupermarket. Its data shows that the average vehicle value for new drivers is around £4600.

The firm also surveyed new drivers to find out which brand of car they drive. Toyota was first by a clear margin, with 23% of new drivers choosing the Japanese brand. The average car insurance premium for a Toyota is £1484.

Premium brand Audi was, surprisingly, second, on 14% – despite an average annual premium of nearly £2000. Ford was just behind on 13%.

The survey showed that once-popular brands among new drivers, such as Nissan, Kia and Peugeot, are losing ground - they each take a 4% share of new driver car brand choices.

Ask HJ

Any suggestions for an inexpensive first car for an 18 year old?

Any suggestions for an inexpensive first car for an 18 year old? We appreciate insurance will be a factor. Many years ago you suggested a Honda Jazz for our niece, this worked well. I think she has now forgiven us but it proved reliable and safe for that first experience!
It depends on how much you're spending - if it's a brand-new or nearly new car, we'd recommend a Hyundai i10, which tops our list of best cars for new drivers (see link below). If you're going a bit older/cheaper, try the VW up!/Skoda CitiGo/Seat Mii. They're all essentially the same car with different badging and light styling changes. They're great for first-time drivers, because they're easy to drive and have excellent visibility. They're also cheap to insure, generally, but be aware that the insurance groups can vary a little. We'd always recommend getting a quote for a potential purchase before committing. https://www.honestjohn.co.uk/guides/best-first-car/
Answered by Matt Robinson
More Questions