Drivers restricted to automatic cars are facing steep insurance penalties compared with motorists holding full manual licenses, new figures suggest, raising fresh questions for brokers about how the UK's rapid shift to automatics and EVs is being priced.
Price comparison platform Quotezone.co.uk found that between April and June 2025, drivers with automatic-only licences paid an average of £1,296 for annual cover, versus £696 for manual licence holders – an 84% difference worth around £600 over a year.
The gap was widest in April, when automatic‑only drivers paid an average of £1,358 compared to £710 for manual drivers, before narrowing slightly in May and June. Over the quarter, automatic licence holders still paid more than £1,260 a year.
The findings land against a backdrop of elevated claims and repair costs. According to the Association of British Insurers, motor insurers paid out a record £11.7 billion in claims during 2024, with the average cost of cover across the year rising 15% to £622 and average repair bills hitting all‑time highs.
Automatics surge as EV era approaches
Automatic cars have become far more common on UK roads. Cap HPI data showed automatics accounted for 16.3% of the UK car parc in 2014 but 29.3% by the end of 2024, with volumes more than doubling to over 15.5 million vehicles.
The transition is being accelerated by the move to electric vehicles, which are almost all automatic. Under the government’s Zero Emission Vehicle mandate, the sale of new pure petrol and diesel cars is due to end in 2030, with all new cars and vans required to be zero‑emission by 2035, pushing more buyers towards EVs and hybrids.
At the same time, more learners are opting for automatic‑only tests, viewing them as easier in heavy traffic and better aligned with electric or hybrid ownership. In just one year, the number taking automatic tests jumped by 123%.
Why automatic cover costs more
Insurers point to higher repair costs on automatics, which typically feature more complex gearboxes, electronics and specialist parts. When these vehicles are involved in collisions, repair bills tend to be higher – a pressure now magnified by EV drivetrains and sophisticated driver‑assistance systems – and those costs are feeding through into premiums.
“Automatic vehicles can be easier to drive in busy towns and cities,” said Greg Wilson, chief executive of Quotezone.co.uk. “But insurers often charge more because repairs are more expensive.” He warned that the issue is likely to get worse as more drivers move away from manual cars.
“With the petrol and diesel ban just five years away, and more learners choosing automatics, the number of automatic cars on the road will continue to rise,” he added.
Brokers eye pricing, telematics and risk selection
For motor insurance brokers, the widening premium gap is both a client‑relations challenge and a product opportunity. Automatic‑only and EV drivers may increasingly question why they are paying substantially more, despite vehicles often being marketed as easier and safer to drive.
Wilson stressed that motorists are not powerless on price. “The most important thing is to shop around,” he said. “Comparing prices can make a big difference.”
Drivers can also lower costs by reducing annual mileage, parking in safer locations and being careful about who is named on their policy. Telematics policies, which track driving behaviour and reward safer driving, may offer particular value for younger automatic‑only motorists, who are already in higher‑risk rating bands.
For brokers, that points to an expanding role in steering customers towards usage‑based and data‑driven products, as the UK’s car parc becomes more automatic‑heavy – and the repair cost gap between simpler manuals and tech‑laden vehicles continues to widen.
