Young drivers in NI are paying nearly £1400 on car insurance

New data has revealed that young drivers in Northern Ireland are paying nearly £1400 on average for car insurance.

Price comparison experts at CompareNI.com have analysed insurance premiums for 18 to 24-year-old drivers in Northern Ireland and across the UK.

Young motorists have been hit the hardest by soaring insurance prices. Research conducted by CompareNI.com revealed that annually, on average, young drivers in Northern Ireland are spending £1359 on their car insurance premiums – 60% more than January last year and 90% more than the regional average across all drivers in Northern Ireland.

With the added costs of learning to drive and buying their first car, many new drivers can’t afford to get on the road after passing their test, and of those who are driving, 25% are considering quitting due to rising costs.

Young drivers in Northern Ireland are spending the least on car insurance out of all the regions in the UK, although they have still seen significant price hikes.

To keep the insurance costs down, drivers are encouraged to compare quotes from different providers, pay annually, improve vehicle security and add an experienced driver to the policy.

Commenting on the figures, Ian Wilson, Managing Director of CompareNI.com said: “It is encouraging that young drivers in Northern Ireland have the cheapest premiums across the UK, however they have still experienced a significant increase in insurance prices.

“Most drivers have seen their insurance premiums increase with inflation, but young drivers usually have to pay more for their premiums as they are less experienced. This is something insurance providers look closely at when carrying out their risk analysis on an individual and determining their premium costs. 

“Although the price of insurance premiums for young drivers is cheapest in Northern Ireland, it is still costly, add that to the price of learning to drive, buying a first car and fuel costs and many young drivers may still be struggling with the cost of driving.

“There are a number of simple things new drivers can do to cut costs when buying insurance. Small changes such as tweaking job titles, taking out the policy at the right time and choosing the right payment plan can all help young drivers find savings.”

Savings experts have created a full car insurance index of average premium prices across all age ranges throughout the UK regions, to help drivers review and find savings.

Here are CompareNI.com’s top tips to help young drivers cut insurance costs:

1.Check your vehicle use

Premium prices can vary depending on your use of the vehicle, it may work out cheaper if a driver is using it for ‘social only’ purposes rather than for ‘social and commuting’ so check how the options affect the price and consider if you can make any changes – just be careful all changes are accurate and reflect how you actually use the vehicle.

2.Check your job title

Job titles often affect the overall premium price, a tweak to your title could help you reduce your premium so try quoting with variations – just make sure the title is still accurate and describes the job you do, incorrect information could invalidate your insurance.

3.Review prices three weeks before renewal

Normally three weeks before your policy is due for renewal is when the prices are most competitive so be sure to keep an eye on your due date.

4.Opt for a smaller engine

Be sure to check your vehicle’s engine size and horsepower, both can impact the cost of your premium. Also, some small engines are turbocharged and that can give them more power than might be expected, which will likely cause the premium to increase.

5.Park in a safe place

If possible, drivers should make use of their garages, driveways or carports for overnight parking. This can keep premium costs down because the safer you can keep your car, the cheaper it is to insure, likely a reduction of at least £140 if you can move your car from the roadside to a private driveway overnight.

6.Opt for telematics or a black box

A telematics policy, or black box insurance starts collecting driving data immediately which can help the insurer with their risk analysis. This way young drivers can demonstrate their safe driving and increase their chances of getting a competitive premium price.

7.Pay annually

If you can, it’s best to pay the annual premium all in one go to knock cash off your policy. Paying annually is normally cheaper because there is no interest to pay.

8.Add another driver

Adding a low-risk driver to your policy could bring down the premium costs especially if the other driver is experienced and has a clean record – just make sure the main driver is actually the one who drives the car the most or you could be charged with insurance fraud.

9.Improve vehicle security

Improving the vehicle’s security by fitting anti-theft devices or dash cams can help drivers get cheaper premiums. It’s worth getting the policy quotes first to consider whether the savings justify the extra cost of the devices.

10.Shop around

Never let a policy auto-renew, even if your provider was the cheapest option for you last year it doesn’t mean they will be the cheapest this year, always shop around and compare products and don’t be afraid to switch providers, it’s an easy process which could lead to substantial savings.  Comparison sites are ideal ways to find better quality products and more competitive prices.

References:

Full car insurance index of average premium prices across all age ranges throughout the UK regions provided on the link, young driver index on the table below and further detail via the link.

	Young Drivers Index Ages 18-24 (Jan 2024)
	REGION	Ave. Premium
1	LONDON	£2,811.38
2	WEST MIDLANDS	£2,392.30
3	YORKSHIRE	£2,327.01
4	NORTH WEST ENGLAND	£2,297.97
5	SOUTH EAST ENGLAND	£2,105.06
6	EAST OF ENGLAND	£2,030.26
7	NORTH EAST ENGLAND	£1,966.55
8	EAST MIDLANDS	£1,964.62
9	SCOTLAND	£1,907.56
10	WALES	£1,835.09
11	SOUTH WEST ENGLAND	£1,714.21
12	NORTHERN IRELAND	£1,359.12

	Average premium cost NI
AGE	Jan-23	Jan-24
18-24	850.49	1359.12
25-34	504.45	726.79
35-44	405.03	554.57
45-64	321.94	445.96
65+	341.85	485.76
All	484.75	714.44

Data tables – The data uses a random sample of over 100,000 UK car insurance policies from January 2023 – January 2024.

**CompareNI.com’s findings are based on a randomised survey of 700 respondents from the UK in July 2023, which represents a margin of error of approximately 5% at a 95% confidence level.