Cheapest places for new driver insurance revealed
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.
