Young drivers in Northern Ireland are facing higher car insurance costs than almost anywhere else in the UK, according to new data.
In a dramatic turnaround, while NI boasted the most competitive car insurance prices for young drivers at the start of this year, the region is now the most expensive outside London.
Research by car insurance experts at CompareNI.com revealed drivers aged 17-24 here are forking out £1,318 on their annual premiums – around 18 per cent more than the national average for that age group.
The latest quarterly data shows that while insurance premiums for young drivers in NI have dropped by £92, that decline has not kept pace with Great Britain – where prices have plummeted by as much as £354.
On a local council level, young drivers in Belfast face the steepest prices at £1,622, with Derry City & Strabane close behind at £1,529 and Lisburn & Castlereagh taking third spot at £1,369.
At the other end of the scale, the cheapest district council area for car insurance is Causeway Coast & Glens (£1,186), followed by Ards & North Down (£1,203) and Mid & East Antrim (£1,204).
While premiums fell across the board in all parts of the UK, NI saw one of the smallest decreases, with overall prices across all age groups dropping by 6% to £557 on average – pushing the region up to 6th place in the league table for most expensive car insurance.
In comparison, Londoners saw prices slashed by 13%, while those in the West Midlands saved 11% on their premiums.
South West England takes the title as cheapest region in the UK with premiums at £473, followed by Wales (£496) and Scotland (£506).
Ian Wilson, car insurance expert and Managing Director at CompareNI.com said: “It is certainly welcome to see insurance prices dropping for drivers of all ages in Northern Ireland, signalling positive progress for cash-strapped motorists. However, it has been a comparatively modest decline compared to other parts of the UK.
“Historically, drivers in Northern Ireland have been affected by a higher crime rate and a higher level of compensation from our courts, typically making premiums here more expensive.
“At the start of 2025, it was great to see prices in NI becoming more competitive for young drivers, who for years have been lumbered with some of the highest insurance costs in the UK. But the market has quickly reversed course, and we are once again one of the most expensive regions, which is sure to be frustrating for young motorists here who are struggling to afford their premiums.
“The good news is, this doesn’t mean insurance for young people here has to be unaffordable, as there are some simple steps they can take to help cut down on costs.
“Knowing the ideal time to renew their policy, steering clear of modifications and opting to install a telematics device can all help young drivers find savings on their premiums.”
Five tips to help young drivers save on insurance:
Smaller cars, with less powerful engines are usually cheaper to insure as they are often less expensive to buy plus parts and repairs normally cost less.
A black box policy, also called telematics insurance, allows an insurer to monitor a person’s driving behaviour and offer cheaper premiums if they can show they are safe behind the wheel.
Tinted windows, neon lights, bigger exhausts and other modifications that change the performance or appearance of a car are likely to increase insurance premiums – some modifications can even void insurance policies altogether if not declared.
Where possible, parking in a private driveway, garage or carport overnight rather than on the street can be a great way to reduce premiums, with motorists able to make savings of around £140.
Normally 15-24 days before a policy is due for renewal is when the prices are most competitive, as drivers could save between 33-45% during this period.**
Young drivers are typically hit hardest by car insurance costs because, statistically, they are involved in more accidents. This is particularly true in Northern Ireland, where drivers aged 16-24 accounted for over two-fifths (41%) of all speed-related casualties.*
While the average insurance cost for young drivers in NI has fallen by over £400 since the end of last year to £1,318, it is still £200 more than the UK average, which is now £1,116 for 17-24-year-old drivers.
CompareNI.com gives drivers of all ages the tools to find better quality car insurance at competitive prices.
