Young drivers in Northern Ireland have seen car premiums fall to their lowest in almost three years, despite a rise in overall insurance prices. While the average cost of insuring a car here 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.

The latest data from CompareNI.com reveals that young drivers here are paying an average of £1303, the cheapest premiums since July 2023. Industry experts believe the drop could reflect the growing popularity of telematics products. Using these has 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 Northern Ireland 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. However, there will no longer be a 45mph limit, and motorway driving is permitted accompanied by an approved instructor.

Motorists aged 17-24 have experienced a 6% drop in premiums over the last quarter.

placeholder image — Motorists aged 17-24 have experienced a 6% drop in premiums over the last quarter.

In 2024, there were 164 casualties (killed or seriously injured) from collisions where a car driver aged 17-23 was responsible. This age group of drivers accounts for 24% of fatal or serious collisions despite holding just 8% of licences. Also in 2024, there were 12 casualties (killed or seriously injured) from collisions where a motor cyclist aged 17-23 was responsible

The Transport Research Laboratory (TRL) reports that similar schemes in Norway, Sweden and Finland as well as further afield in Australia and Canada have been shown to significantly reduce collisions involving younger drivers.

Although the fall in prices is welcome news for 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.

Not surprisingly, 17 and 18-year-olds are the most expensive to insure – with premiums settling around the £1500 to £2000 bracket. However, premiums fall sharply by age 19, showing the value of just a few years’ experience behind the wheel.

Northern Ireland remains the second highest region in the UK for young driver insurance.

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. All eleven Council areas 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.