Northern Ireland Car Insurance Prices Remain High as GB Drivers See Bigger Falls

For many drivers across Northern Ireland, the cost of keeping a car on the road remains a real concern.

While car insurance prices have started to fall across much of the UK, new figures from our partner CompareNI.com show that Northern Ireland has seen only a very small drop. Average car insurance premiums here fell by just £2.06 in the first quarter of 2026, the smallest decrease of any UK region included in the data.

That means local drivers are not yet feeling the same level of relief seen elsewhere.

In the West Midlands, average premiums fell by almost £50 over the same period, while London drivers saw prices drop by more than £30. By comparison, Northern Ireland’s average premium now sits at £624.60, making it the third most expensive region in the UK for car insurance and almost 8% above the national average.

For households already managing the cost of fuel, servicing, repairs and day-to-day living, even small differences in insurance pricing can matter. Car ownership is essential for many people here, particularly in rural areas where public transport is limited and daily journeys often depend on having reliable access to a vehicle.

Northern Ireland is now the third most expensive UK region for car insurance

Northern Ireland once had some of the more competitive car insurance prices in the UK, but the market has shifted over the past year.

According to CompareNI.com, the average annual premium here now sits at £624.60, placing Northern Ireland behind only London and the West Midlands. It is also almost 8% above the UK average.

Source: CompareNI.com car insurance data, Q1 2026.

The table shows the gap clearly. Drivers in the West Midlands saw average premiums fall by almost £50 between Q4 2025 and Q1 2026. London drivers saw a drop of more than £30.

In Northern Ireland, the average fall was just £2.06.

That difference matters. For local households already balancing the cost of fuel, servicing, repairs and everyday bills, insurance remains one of the biggest ongoing costs of running a car.

Why are car insurance prices still high in Northern Ireland?

Car insurance pricing is shaped by many factors, including claims costs, vehicle type, driver age, location, road safety data and wider market conditions.

CompareNI.com points to higher claim costs and Northern Ireland’s road safety record as key reasons why premiums here remain higher than in many parts of Great Britain.

This is not just a financial issue. It is also a community issue.

When insurance becomes more expensive, it affects how people choose, run and maintain their cars. Some drivers may delay changing vehicle, reduce cover options, or feel added pressure when renewing a policy. For younger drivers, the challenge can be even more significant.

Young drivers continue to face the highest costs

Young motorists in Northern Ireland are still seeing some of the steepest insurance costs in the UK.

According to the CompareNI.com data, drivers aged 17 to 24 in Northern Ireland pay an average of £1,386 for car insurance. While this has fallen by more than £80 compared with the previous quarter, it remains around 26% higher than the UK average for that age group.

The figures are particularly stark for 17 and 18-year-olds. CompareNI.com reports that 18-year-old drivers in Belfast are facing average premiums of more than £3,150, higher than anywhere else in the UK.

There are also clear differences depending on where a young driver lives. A 20-year-old motorist in Causeway Coast and Glens is paying an average of £936, while a 20-year-old in Belfast is paying £2,217 on average.

For many young people, that creates a real barrier to independence. A first car can open up access to work, education, training and family support. When insurance costs rise too far, those opportunities become harder to reach.

Road safety and insurance costs are closely connected

Insurance prices are not set in isolation. They reflect risk, and road safety plays a central role in that.

Northern Ireland is set to introduce graduated driver licensing in October 2026, with measures designed to help new drivers build experience more safely before gaining full driving privileges. These include a six-month minimum learning period before taking a practical test, restrictions on night-time driving, and limits on passenger numbers for some newly qualified drivers.

The need for change is clear. Figures referenced by CompareNI.com show that drivers aged 17 to 23 are responsible for almost a quarter of fatal or serious accidents in Northern Ireland, despite holding around 8% of licences. In 2024, there were 164 road casualties where a young driver was responsible.

If the new licensing system helps reduce serious collisions over time, there is hope it could also support lower insurance costs for younger drivers in the longer term. That will not happen overnight, but safer roads and more confident new drivers are positive goals for everyone.

What can drivers do to help manage insurance costs?

Not every factor is within a driver’s control, but there are practical steps that can help.

Shopping around at renewal remains one of the most important. Prices can vary widely between providers, and staying with the same insurer without checking alternatives may mean missing out on a better deal.

The car itself also matters. Smaller, lower-powered vehicles are often more affordable to insure, especially for newer drivers. Avoiding modifications, considering telematics or black box cover, and adding an experienced named driver where appropriate may also help reduce costs.

For anyone buying a used car, insurance should be part of the decision from the start. It is always worth checking the likely insurance cost before committing to a vehicle, not after. A car that looks affordable on the forecourt may become less manageable if the premium is unexpectedly high.

At Used Cars NI, we see this every day. The right car is not only about price, mileage or specification. It is about the full cost of ownership and how well that vehicle fits into real life.

A more informed market helps everyone

The latest CompareNI.com figures show that Northern Ireland drivers are still facing a tougher insurance market than many motorists elsewhere in the UK.

There are encouraging signs, with premiums moving in the right direction overall. But the pace of change here has been slower, and many local drivers will understandably feel that more progress is needed.

Partnerships and clear information have an important role to play. When drivers can compare costs, understand risk factors and make better-informed decisions, the market works better for people.

For Northern Ireland motorists, especially younger drivers and families managing tight budgets, that clarity matters.

Car ownership remains part of everyday life here. Keeping it affordable, safe and accessible should be a shared priority across the industry, government and the wider community.

Find out if you could be saving money on your insurance

Whether you are buying your first car, upgrading the family runaround or reviewing the cost of keeping your current car on the road, insurance is an important part of the overall picture.

Premiums can vary widely between providers, and the right cover will not always come from staying with the same insurer year after year.

Taking a few minutes to compare your options can give you a clearer view of what is available and whether there may be a better fit for your needs and budget.

Through our partner CompareNI.com, you can compare car insurance quotes and see whether you could be saving money on your cover.

Data provided by CompareNI.com, Northern Ireland's largest price comparison site. compareni.com