Automatic Car Insurance Warning: Drivers Face Double Premiums
New research has issued a stark warning for anyone who drives an automatic vehicle, revealing that insurance costs are soaring to almost double those for manual cars. This significant price disparity is emerging as a hidden financial burden for millions of motorists across the UK, particularly amid the ongoing shift towards electric and automatic vehicles.
Alarming Insurance Premium Differences
Analysis conducted by the price comparison website Quotezone.co.uk has uncovered a dramatic gap in car insurance premiums between automatic and manual drivers. The study, which examined over 100,000 car insurance policies, found that automatic-only drivers are paying an average of 84% more for their cover. This figure peaked at a staggering 91% higher in April, highlighting a concerning trend for those behind the wheel of automatic vehicles.
During the second quarter of 2025, the average car insurance premium for a driver with a manual licence stood at £696. In stark contrast, automatic driving licence-holders faced an eye-watering average premium of £1,296 during the same period. This represents an additional annual cost of £647 for automatic drivers, a substantial sum that is catching many motorists by surprise.
Factors Driving the Premium Increase
According to Quotezone, the disparity in car insurance prices is primarily due to the advanced features and components found in automatic vehicles. These include complex gearboxes and integrated electronics, which are more expensive to purchase and repair. Insurers often view automatic cars as higher risk, leading to increased premium rates for their owners.
Greg Wilson, CEO of Quotezone, emphasised the importance of awareness for drivers. "Drivers should be aware that insurers often view them as higher risk, and may charge higher rates," he stated. "Our data shows that in April of this year, automatic drivers were paying £647 a year more for their insurance policies than manual drivers."
The Impact of Electric Vehicle Growth
The push towards electric vehicles, supported by government initiatives, is a key factor behind this insurance trend. As more learner drivers opt for automatic-only licences to accommodate EVs, the number of such licences has surged by 123% in just a single year. This shift is contributing to the rising insurance costs for automatic drivers, even as manual gearbox models are being phased out by car manufacturers.
Wilson advises automatic-only licence holders to be proactive in managing their insurance expenses. "For those with an automatic-only driving licence, this makes it particularly important to seek multiple quotes before renewal," he recommended. "There are always savings to be had. The key is to shop around."
Practical Advice for Motorists
Drivers are now being urged to consider continuing their learning on manual cars, even if they plan to drive automatic or electric vehicles in the future. This approach could help mitigate some of the insurance costs associated with automatic-only licences. The surprising difference in premiums is being described as a ‘hidden cost’ that risks impacting millions of motorists as the UK transitions away from manual gearboxes.
As the automotive landscape evolves, staying informed and comparing insurance options remains crucial for all drivers, especially those navigating the automatic vehicle market.
