Fears new car trends will drive up your insurance 

Keeping up with the latest car trends could lead to drivers paying more on their insurance premiums, according to price comparison site CompareNI.

In a survey of 800 drivers in Northern Ireland, CompareNI discovered that when it comes to growing car trends such as the increase in vehicle size year on year, it seems many local drivers are not in favour and fear the expense.

When asked why they were not a fan of bigger cars, 15% of those surveyed felt these types of vehicles use too much fuel, while a further 15% said they were too expensive to buy.

Meanwhile,14% were put off by the potentially higher cost of car insurance, while 11% pointed to larger cars being more difficult to park.

Only 11% said they liked bigger cars, claiming they felt safer driving these vehicles. Despite all the ‘upscaling’ going on in the motoring world, it would appear the public seem to prefer a smaller option.

A resounding 85% of those surveyed admitted they thought that the bigger the car, the more the insurance is likely to be, this however, is not always the case.

Size alone is unlikely to affect insurance premiums.  Chances are, bigger cars may be more expensive as they have more advanced technology on board, more powerful engines or in general, are more expensive to buy – all of which will likely have an effect on the price of the car insurance. 

When it comes to other motoring trends, interest in the electric car option is starting to pick up pace, but drivers are being warned that unforeseen issues may lead to higher costs and higher insurance premiums. To replace an electric car battery for example, could cost from £4,000 to £16,500 depending on the type of car and the size of the battery.  *

There’s also a danger of accidentally voiding the insurance altogether, some home insurance providers recommend that EV home chargers get checked annually by a professional, **failing to do so may void the policy and leave people unprotected.

New technology in cars could also affect insurance premiums. Whether it’s the very latest audio system or lane departure warning system, the more technology present,  the more expensive the car is likely to be and the greater the risk of theft, something insurance providers take into consideration when determining risk.   

Also, the larger the amount of software systems and the more online connectivity the car has, the greater the cybersecurity risk.*** Encryption and firewall systems can help control this but it’s an additional risk insurance providers are likely to take into consideration.

AI will also leave its mark on the automobile revolution, with AI powered braking systems and advanced driver assistance systems. AI can look out for the blind spot and help with a smooth transition to a new lane. ****The sensors in the car can keep drivers a safe distance from the car in front, but be aware that the more advanced features a vehicle has, the higher the insurance cost is likely to be as they can be expensive to repair and replace and increase the overall cost of the vehicle.

The arrival of the hydrogen car could also mean a more expensive vehicle. While the hydrogen is converted into electricity and may indeed offer a cleaner option, the hydrogen fuel cell option is expensive to manufacture, costing much more than a gas or electric option. The fuelling points are not that prevalent, with only a handful across the UK, which creates an added problem.  BMW intend to unveil a hydrogen powered car in 2028, which will be expected to travel further than the current hydrogen fuel cell options and potentially further than any electric vehicle currently on the market.*****

Car ownership is also changing in 2025. The subscription-based model is becoming more popular, as motorists can pay a monthly fee to use the car for a set period.******  The insurance can be included in the subscription fee and drivers can change the car whenever suits them. Given the financial pressures currently facing the UK, this may pose an interesting proposition for many drivers.

CompareNI Managing Director and car insurance expert Ian Wilson commented on how the new trends in 2025 could affect insurance, saying: “As our survey has pointed out, there are a lot of hot new car trends for 2025 worth debating.  It’s important though for all drivers to make sure they get as competitive an insurance policy as possible, no matter what enhancements their vehicle will adopt.  Our comparison site helps drivers compare products like for like and find savings.

“The cost of car insurance may still be high but it is moving in the right direction with a decrease in premiums for all age groups and there are additional savings to be found.

“Drivers should pay particular attention to the price sensitive questions on the quote form, such as where the car is kept overnight and the how the vehicle is used – there may be changes drivers can make to their lifestyle to help reduce costs.  Just note, all information needs to be up to date and accurate or it could void the policy and leave drivers unprotected.”

CompareNI helps drivers compare and find savings on all sorts of motoring products, such as car, van and motorbike insurance.

References:

*https://blog.chargemap.com/electric-car-battery-replacement/

**https://citaevcharger.co.uk/articles/home-ev-charger-maintenance

***https://www.forbes.com/sites/edgarsten/2023/04/26/cybersecurity-vulnerability-in-vehicles-is-escalating-as-software-engineer-shortage-grows/

****https://www.yunextraffic.com/newsroom/blind-spot-monitor/#:~:text=Technological%20Innovations%3A%20Yunex%20Traffic%20integrates,in%20high%2Ddensity%20urban%20environments.

*****https://www.thisismoney.co.uk/money/electriccars/article-13816693/BMW-sell-hydrogen-car-2028-range-500-MILES-refuel-matter-minutes.html

******https://www.thecarexpert.co.uk/car-subscription-services-explained

Survey – CompareNI.com’s findings are based on a randomised survey of 800 respondents across Northern Ireland during February 2025, which represents a margin of error of approximately 5% at a 95% confidence level.