How much young drivers are paying for car insurance across Northern Ireland

Young drivers have seen car premiums slashed to their lowest in almost three years, despite a rise in overall insurance prices

Young drivers in Northern Ireland have seen car premiums slashed to their lowest in almost three years, despite a rise in overall insurance prices.

While the average cost of insuring a car in the region has climbed to £664 – the highest level in 18 months – motorists aged 17-24 have experienced a 6% drop in premiums over the last quarter.

That’s according to new data from CompareNI.com, which shows that young drivers here are paying an average of £1303, the cheapest premiums since July 2023, when prices were £989.

Industry experts believe the drop could reflect the growing popularity of telematics products, which have made premiums more affordable for this notoriously expensive age group by rewarding them for demonstrating safe driving habits.

Another potential factor for falling young driver premiums may be the upcoming arrival of new road safety measures, with NI set to become the first UK region to adopt graduated driver licensing (GDL) this October.

The new system will introduce a six-month wait for learner drivers before taking a practical test, an extended ‘R’ plate period from 12 months to 24 months, as well as restrictions on night-time driving and passenger numbers.

With similar schemes in other countries proven to reduce crashes among younger drivers, experts believe the planned introduction of GDL here may already be helping to reduce premiums as insurers begin to reassess future risk.

Although the fall in prices will come as welcome news to cash-strapped younger motorists, Northern Ireland remains the second highest region in the UK for young driver insurance, coming in just behind London. The cheapest areas, Wales and South West England are more than £400 cheaper.

The average annual premium by Northern Ireland council area

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Across NI, four council areas see teenagers facing premiums of over £2000, including Belfast, Lisburn and Castlereagh, Antrim and Newtownabbey and Newry, Mourne and Down. Even the cheapest areas, Causeway Coast and Glens and Ards and North Down, both still report premiums of over £1500.

Not surprisingly, 17 and 18-year-olds are the most expensive to insure – with those in Belfast forking out more than £2400 on average.

However, premiums fall sharply by age 19, showing the value of just a few years’ experience behind the wheel. In Antrim and Newtownabbey for example, drivers aged 19 are saving as much as £673 compared to those just a year younger.

Overall, Northern Ireland saw the second biggest jump in prices anywhere in the UK, up by 6.4% across all age groups over the last quarter – behind only Yorkshire.

All 11 Council areas here saw premiums rise, with the biggest being seen in Ards and North Down and Armagh City, Banbridge and Craigavon, which both recorded price hikes of over £50 – a jump of 9.5% on last quarter.

At the other end of the scale, Mid Ulster saw the smallest increase at just 2.7%, closely followed by Derry City and Strabane and Fermanagh and Omagh, both with a rise of 3.2%.

While Northern Ireland once boasted some of the UK’s most competitive car insurance prices, it has jumped up the regional rankings over the past two years and is now the third most expensive, 7.3% above the national average. This is mainly due to a combination of higher claim costs and a poorer road safety record compared to the rest of the UK.

Ian Wilson, car insurance expert and Managing Director at CompareNI.com said: “It is encouraging to see young drivers getting some much-needed relief when it comes to insurance costs, with premiums for this group now the cheapest they have been in almost three years.

“However, 17–24-year-olds are still paying significantly more than other age groups and Northern Ireland remains one of the most expensive places anywhere in the UK for new motorists to get insured.

“The growth of telematics or black box insurance is likely helping more young drivers find savings on their insurance by rewarding safe driving habits, while the arrival of graduated driver licensing later this year could also be contributing to lower premiums.

“Similar schemes are used in other countries such the United States, Canada and Australia and evidence shows they can significantly reduce crashes involving young drivers.

“Insurers don’t just look backwards, they also take future risk into account, basing prices on what they predict claims will look like over the next 12 months and beyond. So, it is possible that providers may have already begun adjusting premiums ahead of these new road rules coming into force.”

Mr Wilson says that while young drivers have experienced savings, the wider picture is less positive, with overall costs in Northern Ireland climbing to their highest since the start of 2025.

“Despite this, there are always steps drivers can take to help bring down their insurance costs, such as parking the vehicle on a private driveway overnight if possible, lowering the annual mileage and never allowing a policy to auto-renew without shopping around,” he added.

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