Car insurance for young drivers in Northern Ireland down due to Covid
The cost of car insurance for young drivers fell last year due to the Covid-19 pandemic.
Statistics from comparison site CompareNI.com show that in 2020 the average premium cost for young drivers – those aged 17-29 – was £ 846.86.
This figure is down from £ 889.23 in 2019.
Greg Wilson, chief executive of Compare NI, explained that the Covid crisis was a factor in the downturn.
‘Drivers in Northern Ireland spent much less time behind the wheel during the pandemic than they normally would, and with fewer vehicles on the road during the lockdown and each of those vehicles driving fewer miles, the result net has been fewer accidents and fewer insurance claims, ”he said.
Despite this, drivers aged 17 to 21 still pay an average of 38% more for auto insurance than the average young driver.
In 2020, 17-21 year olds paid an average premium of £ 1,172.73, up from £ 1,203.14 in 2019.
Meanwhile, people aged 22 to 25 paid an average of £ 833.11 in 2020, up from £ 840.05 in 2019.
And drivers aged 26-29 paid an average of £ 691.68 in car insurance premiums in 2020, up slightly from £ 685.06 in 2019.
Mr Wilson went on to say: “Data from the Association of British Insurers revealed that the total number of insurance claims fell 19% in 2020, while the total amount paid by insurers fell by 6%. %, with premiums decreasing slightly to reflect this fact. “
CompareNI data also shows that there was a 42% drop in drivers aged 17 to 21 in 2020 and a 12.6% drop in new drivers – those who have driven for zero to two years – in the together.
In 2020, only 17% of learner drivers in Northern Ireland were over 30 years old.
“It is also worth mentioning that the postponement of driving tests during the pandemic has also meant that fewer new drivers have been able to hit the road,” Wilson told the Belfast Telegraph, adding that this has “in turn contributed to bring down the average cost of insurance decline because new drivers tend to pay much more for their auto insurance due to their inexperience ”.
New drivers pay on average 53% more for car insurance than experienced drivers in Northern Ireland.
And the number of driving tests carried out in Northern Ireland is up 50% from pre-pandemic levels as part of an effort to tackle the backlog caused by the pandemic.
In the four months after resuming testing, nearly 23,250 tests were performed.
But even so, it’s hard to predict whether auto insurance premiums will increase this year, Wilson said.
He added: “It’s fair to say it’s not a normal year.
“As more motorists are gradually returning to the roads of Northern Ireland, many people are still working from home which means less mileage and potentially fewer accidents this year as well.
“In addition, the Financial Conduct Authority’s new rules on insurance pricing come into effect in early January, and all of these factors make it almost impossible to predict how premiums might change.”