Car insurance hikes overtake fuel prices as top concern for motorists

Car insurance premium hikes have become the leading concern for motorists, overtaking rising fuel prices, according to new research from Close Brothers Motor Finance.

The survey of 2,001 motorists on their key concerns for 2025 found that 37% of drivers are most worried about further increases in car insurance costs. This marks a shift from last year when fuel prices were the top concern, now dropping to second place at 35%, as fuel costs have remained relatively stable.

More than a quarter of drivers (27%) highlighted pothole damage as a major concern, while 24% are worried about rising MOT and servicing costs. Only 8% of motorists said they have no concerns, emphasizing the financial strain on UK drivers.

Over two-thirds of motorists believe the Government should be doing more to support them, with only 16% feeling that current efforts are sufficient. Insurance prices remain the top issue drivers want action on, with 55% calling for a cap on premiums. Reduced road tax rates follow closely behind, with 53% of motorists supporting the measure.

Half of drivers want the current fuel duty freeze to remain in place, while others are calling for incentives to ease the cost of switching to electric vehicles, including tax relief for work-related car use and subsidies for EV charging infrastructure, congestion zones, and ULEZ fees. Only 3% believe no government action is necessary.

John Cassidy, managing director of sales at Close Brothers Motor Finance, commented: “Motorists continue to feel the pinch from all angles, and rising insurance premiums are yet another challenge for car owners to contend with. 

“The Government will need to give serious consideration to incentives, as well as any form of intervention to stop insurance premiums from spiralling out of control. This is especially important as their ambitious zero emission vehicle (ZEV) mandate targets and proposed 2030 new petrol and diesel vehicle ban rely heavily on consumers shifting towards alternative fuel vehicles. Incentives, such as road tax exemption or grants for electric vehicles would encourage more buyers to make the shift and encourage widespread adoption. 

“Drivers should consider motor finance as an option - not just to limit large scale financial outlay, but also to take advantage of the added protections finance providers can offer, especially given the current economic uncertainty which has been the theme of 2025 so far.”