Car insurance hikes have surpassed rising fuel prices as the primary concern for UK motorists, according to new research from Close Brothers Motor Finance.
A survey of 2,001 drivers on their key concerns for 2025 found that 37% are worried about further increases in car insurance premiums. This marks a shift from last year when rising fuel costs were the top concern. Fuel prices, which have remained relatively stable since the start of the year, are now the second-biggest worry at 35%.
More than a quarter (27%) of drivers expressed concern over potholes damaging their vehicles, while 24% highlighted the increasing cost of MOTs and servicing. Only 8% of respondents said they had no motoring concerns, reflecting the financial pressures facing UK drivers.
The study also found strong public sentiment in favour of greater government intervention, with more than two-thirds of motorists believing more should be done to support them. Only 16% felt the government’s current measures were sufficient.
Insurance premiums topped the list of areas where drivers want support, with 55% calling for a cap on insurance costs. Other key measures motorists would like to see introduced include:
- 53% – Reduced road tax rates
- 50% – Retaining the fuel duty freeze
- 28% – Incentives to help with the cost of purchasing an electric vehicle (EV)
- 26% – Tax relief for work-related car use
- 23% – Incentives to help with EV charging costs
- 23% – Subsidised road tax, congestion charges, and ULEZ for EV owners
- 3% – No additional government measures
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, commented on the findings: “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 ban on new petrol and diesel vehicles 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 promote widespread adoption.”
Cassidy also noted that motor finance could help drivers manage costs, particularly amid ongoing economic uncertainty. “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,” he said.
