New Drivers See Insurance Premiums Fall, Says Compare The Market

It isn’t the anecdotal evidence on social media, but the latest data suggests that insurance might be getting cheaper for new drivers. Here’s the word;

New research from Compare the Market reveals how much it really costs to get on the road in 2026.

The average insurance premium for drivers who have held their licence for less than a year has fallen to £1,871 in 2026, down from £2,650 in 2024.

But starting out as a new driver is still expensive, and there are plenty of costs to think about, beyond the wheels themselves.

Buying your first car now costs more 

Unsurprisingly, today’s young drivers are paying far more for their first car than previous generations. While 38% of over-55s paid less than £1,000 for their first car, almost a third (32%) of 17 to 24-year-olds are now spending £5,000 or more. (about the same allowing for inflation – Ed)

As costs increase for young drivers, 86% of young drivers say they’ve received financial help from their parents or guardians. Two-thirds (66%) of parents say they’re currently helping, or expect to help, their children cover these early costs.

Insurance premiums have fallen, but choice still matters

Average insurance premiums are down nearly 30% in two years. But what you drive still makes a big difference:

• Engine size: Cars with engines under 1.0L cost £532.55 on average to insure, compared to £954.77 for engines 3.0L and above.

• Car age: Vehicles aged 1 to 3 years show the lowest average premiums at £520.20. Cars over 15 years old average £674.61.

The most popular car makes and their associated premiums for 17-year-olds (2026/2024 comparison)

According to our data, the most popular cars for new drivers across all generations include Ford, Vauxhall and Mini, with almost a third of Brits opting for a Ford as their first car.

The cost beyond the wheels

More than half (53%) of new drivers spent between £1,000 and £3,999 on fuel, insurance, tax and maintenance in their first year, excluding the cost of the car itself.

The rising cost of driving is changing how young motorists interact with their friends. Financial pressure has made sharing costs a practical necessity rather than just a polite gesture.

Research shows that 18% of young drivers now feel they must ask friends for petrol money when fuel prices are high. Also, 37% say it is necessary to ask for a contribution when friends regularly expect to be driven around.

A milestone that still matters 

Despite the costs, a first car remains a big life moment. Three quarters (75%) of UK drivers look back on their first car fondly, and 61% say it gave them a vital sense of freedom and independence.

For a third of Brits, the bond with their first car runs deep, with 33% admitting they even gave it a name.

Amy Rootham, car insurance expert at Compare the Market, says: “While it’s encouraging to see average premiums fall for newly qualified drivers, insurance is still a major part of the first-year budget. The car you choose can make a real difference. Opting for a smaller engine or a vehicle in a lower insurance group can help keep costs down. Telematics or ‘black box’ insurance policies can also be a good option for young or new drivers, as they’re often more affordable and can encourage and reward safer driving. Considering these things whilst shopping around can help you find a good deal within your budget.”

“It’s important to look at the total cost of ownership rather than just the price tag on the windscreen. Factoring in tax, fuel, and maintenance from the start could help to protect you from any surprises. If you are facing a wait for your driving test, use that time productively to do some thorough research. Comparing different models and insurance policies early means you could be in a strong position to secure a deal that fits your budget and needs the moment you pass.”