UK Car Insurance Premiums Fall Overall Young Drivers Face Hikes

Car insurance premiums in the U.S. and the UK show contrasting trends in 2025, with tariffs on imported auto parts in the U.S. expected to increase repair costs and push premiums higher, especially in import-reliant states and among lower-income households. The 25% tariff on auto parts like engines and ADAS sensors, effective May 2025, could add $20-$50 per repair, leading to higher insurance payouts and premium hikes, as noted by experts and the National Law Review. Meanwhile, in the UK, overall car insurance premiums have fallen by 10.5% in the past year, with significant regional drops, but premiums for drivers under 25 have risen by about 3%, driven by less competition from telematics providers who typically help younger drivers access lower rates. Younger drivers, particularly those aged 17 to 19, face the most significant premium increases despite overall market declines, with common quotes for under-25s ranging from £500 to £749. Since 2013, average premiums have nearly doubled globally, with the over-50s seeing the largest increases, though recent data shows the over-50s and 25-49 age groups benefiting from recent premium reductions. This divergence highlights the impact of trade policies and market dynamics on insurance costs across different demographics and regions.