Car insurance hikes have overtaken rising fuel prices as the leading concern for motorists, according to new research from Close Brothers Motor Finance.
The research, which surveyed 2,001 motorists on their key concerns for 2025, revealed that 37% of drivers are concerned about further car insurance premium hikes. This has overtaken rising fuel prices, which 12 months ago ranked as the leading concern for drivers, but has now dropped to second (35%) as prices have stayed relatively stable since the start of the year.
More than a quarter (27%) of drivers also highlighted their fears over potholes damaging their vehicles, and 24% also share concerns over increasing MOT and servicing costs. Only 8% of motorists stated that they do not have any motoring concerns, highlighting the challenges drivers in the UK currently face.
2025 driver concerns:
37% Car insurance hikes
35% Rising fuel prices
27% Potholes damaging the vehicle
24% MOT / servicing costs
19% Road tax hikes
16% Cost of purchasing a car
15% Further crackdowns on petrol/diesel vehicles
14% Not being able to afford the running costs
12% Parking charges increasing
9% High second-hand car prices
8% Introduction of ULEZ / similar schemes
8% There is nothing that's my biggest concern about owning a vehicle/driving
in the next 12 months
7% Lack of infrastructure development, such as charging points
6% Not picking the right choice of vehicle for my needs
4% Losing the incentives that currently exist for AFV owners
4% Having to lend / share my vehicle with someone else i.e. my partner or
children
More than two-thirds of motorists also believe the Government should be doing more to help, with only 16% believing they are currently doing enough. As well as topping the list of concerns, insurance prices are also the thing motorists would like support for the most, with 55% calling for a cap on insurance premiums, followed by 53% who would like to see reduced road tax rates. 50% would also like to see the current fuel duty freeze kept in place This is followed by:
● 28% - Incentives to help with the cost of purchasing an EV
● 26% - Tax relief for work related car use
● 23% - Incentives to help with the cost of EV charging points
● 23% Subsidised road tax, congestion zones, ULEZ for EV drivers
● 3% - I wouldn’t like to see the Government introduce any measures
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.”
