A new report shared by Insurance Business UK highlights a growing insurance cost gap for motorists who hold automatic-only driving licences, with premiums coming in close to double those paid by drivers licensed to drive manuals.
According to data from Quotezone.co.uk, drivers restricted to automatic vehicles paid an average £1,296 for annual car insurance between April and June 2025. By comparison, drivers with full manual licences paid £696 on average – an 84% difference, equating to roughly £600 extra per year.
The disparity was at its widest in April, when automatic-only drivers paid an average of £1,358, compared with £710 for manual licence holders. Although the gap narrowed slightly in May and June, automatic-only motorists were still paying more than £1,260 a year over the quarter.
These figures come amid rising insurance pressures across the market. The Association of British Insurers reports that insurers paid out a record £11.7 billion in motor claims during 2024, with the average cost of cover rising 15% to £622 and vehicle repair bills reaching all-time highs.
Automatics surge as the EV transition accelerates
Automatic vehicles are becoming increasingly common on UK roads. Cap HPI data shows automatics made up 16.3% of the UK car parc in 2014, rising to 29.3% by the end of 2024, with total numbers more than doubling to over 15.5 million vehicles.
This shift is being driven largely by the move towards electric vehicles, which are almost exclusively automatic. Under the government’s Zero Emission Vehicle mandate, new petrol and diesel car sales are due to end in 2030, with all new cars and vans required to be zero-emission by 2035.
At the same time, learner drivers are increasingly opting for automatic-only tests, often citing ease of driving in traffic and better compatibility with EVs and hybrids. Over the past year alone, the number of learners taking automatic tests reportedly rose by 123%.
Why insurers charge more for automatics
Insurers argue that automatic vehicles typically cost more to repair due to complex gearboxes, electronics, sensors, and specialist parts. These higher repair costs are amplified further in EVs, which often include advanced driver-assistance systems and expensive battery components.
Greg Wilson, chief executive of Quotezone.co.uk, said that while automatics may be easier to drive in urban environments, insurers factor in the higher cost of repairs when pricing premiums. He warned that the issue could worsen as more drivers move away from manuals ahead of the 2030 ban on new petrol and diesel cars.
DM News Commentary
This is a worrying trend for taxi, private hire, and Uber drivers – especially those already locked into automatics or EVs. Many drivers didn’t choose automatics for comfort; they were pushed that way by emissions rules, city clean-air zones, and platform requirements.
If insurers continue to price automatic-only licences as higher risk, we could see drivers paying more simply for complying with future transport policy. With EV adoption accelerating and more learners bypassing manual licences entirely, insurers may need to rethink how risk is assessed – or face growing pushback from drivers who feel unfairly punished for modernising.
For professional drivers, this also reinforces the importance of shopping around, considering telematics, and factoring insurance costs into vehicle upgrade decisions well before switching.
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