Rising Costs of Car Insurance Prompt NI Drivers to Rethink Driving Habits

Survey Highlights and Rising Costs
A survey ofdrivers in Northern Irelandhas found that 71% say their car insurance is more expensive now than this time last year. The survey, of 800 drivers in Northern Ireland, showed over a third, 35%, would evenreconsider driving altogetherdue to rising costs. Two-thirds, 66%, said rising costs have affected how they use their vehicle – with drivers reducing mileage, using more public transport, and using one vehicle now for the whole family.

Trends in Premiums
The last five years have been a rollercoaster for car insurance premiums, between May 2021 and June 2024 the quoted price of car insurance rose by 82%. CompareNI.com says part of the reason why prices have increased so much in relative terms is that they started from a low base, having fallen 16% between March 2020 and May 2021 during the pandemic.

Factors Affecting Premiums
One of the key reasons for the decline in premiums during this time was the lack of people using their cars, reducing the number of accidents and showing a decline in the number of cars involved in collisions. This meant insurer profits went up as they had to pay out for fewer claims, allowing them to lower premiums. Since the pandemic, insurers have been experiencing significant and sustained cost pressures, as a result of record claims costs and broader price inflation such as rising fees for spare parts, fuel, labour, and energy costs.