Difference in insurance costw between automatic and manual cars

Drivers of automatic cars pay nearly £100 a year more on average for their insurance than owners of models with manual gearboxes, research shows.

The typical cost of a yearly insurance premium for a motor with a manual transmission is £466 compared to £560 for automatic cars, according to data from MoneySupermarket – or a fifth cheaper.   

Despite being more expensive to buy and insure, searches for automatic car cover have risen steadily over the last two years from 22 per cent to now make up 28 per cent of all enquiries.

However, during that time, the average price for both automatic and manual insurance policies has decreased.

Manual car insurance premiums dropped by 24 per cent – equivalent to £151.18 – in comparison to a 14 per cent decrease – equivalent to £88.57 – for automatics.

In February 2020, the average policy cost for an automatic car was £560.01 – 20 per cent more than a manual – which came to an average of £465.94. That works out at a £94.07 difference.  

But only two years ago, the average price for automatic cars was only five per cent more expensive, showing a growing cost disparity between the two car models. 

A likely reason for this price increase could be down to the technology advancements in automatic cars. 

A car with an automatic gearbox is now usually at least £1,000 more expensive than the same model fitted with a manual transmission.  

Many luxury models and sports cars are only available with automatic gearboxes, which inflates the cost of cover for these drivers that already experience some of the largest premiums. 

The type of licence drivers have also affects the cost of a premium as those with a full UK licence will pay £483 on average compared to £833 for those with automatic only licences.

The proportion of enquiries relating to automatic-only UK licence holders also increased from 2.14 per cent in January 2018 to 2.67 per cent by January 2020, showing more people are leaning away from driving manual operated cars. 

A study for AA last year found that more than half of drivers believe automatics are easier to drive and could therefore find them more desirable.

It also revealed that twice as many drivers are on the hunt for cars with automatic gearboxes than five years ago, with the spike likely to be due to the fact many are looking for electric cars, which are more environmentally friendly, and mainly automatic. 

Regional activity

The data also found that London has the highest proportion of enquiries for automatic car and automatic only driving licences.

Insurance claims from automatic car drivers were all higher for those living in London boroughs with 56 per cent in the West Central postal area enquiring about automatic car insurance over manual car insurance. 

Some 52 per cent in the East Central district enquired whilst 54 per cent in North West London and 51 per cent of respondents from Harrow, Ilford and Barking also made enquiries about insurance to cover their automatic cars.

Outside of the London Boroughs, other areas of the UK with the highest proportion of insurance enquiries for automatic cars include Jersey and Guernsey, while at the other end of the spectrum the Isle of Lewis sees the smallest proportion of automatic drivers.

Dave Merrick, car insurance expert at MoneySupermarket said: ‘There are many factors that can affect the cost of insurance premiums, such as age, driving experience and the car make and model.

‘From January 2018 to January 2020 we have seen a huge increase in the price difference between insurance for both automation and manual cars. 

‘This has risen from five per cent to 21 per cent and has stayed stable for the last six months.

‘One reason for this could be a result of increased technology in automatic cars over time for, example, the parts that make up an automatic gearbox are more complex and could cost more to repair. 

‘However, due to improvements in technology, an automatic car might help you save money in the long run through better fuel efficiency.’

Customers who want to save money on their car insurance are encouraged to use price comparison websites and shop around to get a better deal, potentially saving themselves hundreds of pounds a year. 

MoneySupermarket analysed more than 15million car insurance enquiries between January 2018 and February 2020.