Drivers in Northern Ireland are seeing almost no benefit from falling car insurance costs, with premiums here barely budging compared to the rest of the UK.
New figures reveal Northern Ireland recorded the smallest decrease of any region, with average prices falling by just £2 over the last quarter.
Elsewhere, motorists have seen more meaningful savings. Drivers in the West Midlands enjoyed average drops of nearly £50, while Londoners saw prices fall by more than £30.
The findings are based on the latest data from car insurance experts at CompareNI.com, who analysed the most recent quarter of statistics to see how insurance costs for Northern Ireland drivers stack up against those in Great Britain.
While Northern Ireland boasted some of the most competitive car insurance prices back in 2024, it has jumped up the regional rankings over the past year and is now the third most expensive, with average prices currently sitting at £624 – almost 8% above the national average.
Despite premiums here dropping by less than 1% this quarter, Northern Ireland remains broadly in line with the trend of falling premiums across the UK over the past year.
UK REGION
ANNUAL PREMIUM Q1 2026
DROP SINCE Q4 2025
London
£798.20
£32.53
West Midlands
£654.25
£49.77
Northern Ireland
£624.60
£2.06
North West England
£583.08
£32.76
Yorkshire
£577.11
£44.45
East Midlands
£547.62
£32.07
East of England
£531.71
£22.15
South East England
£531.02
£14.03
Scotland
£506.15
£12.19
North East England
£500.62
£21.02
Wales
£486.36
£16.60
South West England
£470.52
£8.68
As is typically the case, young motorists across Northern Ireland continue to face some of the steepest costs anywhere in the UK, with drivers aged 17-24 forking out £1,386 on average.
While that represents a drop of over £80 compared to Q4 2025, it is still around 26% more than the national average for that age group.
Unsurprisingly, 17 and 18-year-olds were the most expensive to insure – with drivers aged 18 in Belfast being hit with higher costs than anywhere else in the UK at over £3,150 – almost £600 more than their counterparts in London.
However, data shows premiums for Belfast drivers plummet by over £700 by the time they reach 19-years-old, showing how time and experience behind the wheel can have a dramatic impact on insurance costs.
The latest figures also show stark differences in price between district councils, with some areas paying more than double for their insurance than others.
Research reveals that while 20-year-old motorists in Causeway Coast and Glens are paying £936, those in Belfast are forking out an average of £2,217 per year – a staggering 137% increase.
There are many reasons why the price of insurance tends to be higher for young drivers, with lack of experience and an increased risk of accidents being major risk factors for insurers.
Figures show drivers aged 17-23 are responsible for almost a quarter (24%) of fatal or serious accidents in Northern Ireland, despite only holding about 8% of licences. In 2024, there were 164 road casualties where a young driver was responsible.
In a bid to reduce the number of young people killed or seriously injured on our roads, Northern Ireland is set to become the first UK region to adopt graduated driver licensing in October this year.
New measures such as a six-month wait for learner drivers before taking a practical test, as well as restrictions on night-time driving and passenger numbers – will allow newly qualified drivers to gain valuable experience and develop safer habits before gaining access to full driving privileges.
If the new system helps lower the number of road accidents, potentially reducing claims, this could in turn help to make car insurance premiums more affordable for young motorists.
Ian Wilson, car insurance expert and Managing Director at CompareNI.com said: “While it is encouraging to see car insurance premiums continuing to fall across the UK, it is disappointing that Northern Ireland has not kept pace with other regions.
“The minimal drop in prices here will be frustrating for cash-strapped motorists who are already dealing with surging fuel costs and struggling with stubbornly high living costs.
“A key reason why Northern Ireland remains one of the most expensive regions of the UK for car insurance is down to a combination of higher claim costs and a poorer road safety record compared to Great Britain.
“Due to their inexperience and higher risk factor, young drivers are being hit hardest, with some teenagers here facing eye-watering premiums of over £3,150, more than any other part of the UK.
“With graduated driver licensing set to be introduced in Northern Ireland later this year, there will be hopes that the new system can help improve road safety and, over time, bring down insurance costs for younger drivers.
“In the meantime, there are things young drivers can do to help reduce costs, such as shopping around when renewing their policy, adding a more experienced driver, opting for a smaller, less powerful vehicle, using telematics and avoiding modifications – all of which could help to lower risk in the eyes of the insurer.”
As Northern Ireland’s largest price comparison site, CompareNI.com gives drivers of all ages the tools to shop around and find better quality car insurance at competitive prices.