Older drivers in Northern Ireland are being hit harder than almost anywhere else in the UK for spreading the cost of their car insurance, new data has shown.
Research by CompareNI.com has found that motorists aged 65 and over in NI are consistently forking out more than most other regions when paying their insurance in monthly instalments rather than a one-off lump sum.
The findings come after a Financial Conduct Authority (FCA) investigation into premium finance charges led to firms reducing their interest charges, saving motorists £157 million on monthly motor insurance payments.*
CompareNI.com’s analysis reflects this fall in prices – with the average difference between monthly versus annual payments for NI motorists dropping from an average of 13.5% in 2024, down to 10.7% in 2025 and 9.6% in 2026.
However, the data also indicates that older drivers here remain at a disadvantage compared to other UK regions.
In 2024, drivers aged 65 and over in NI were paying an average of £486 for their annual premiums, if they could afford to pay it upfront. However, those paying monthly faced an average overall cost of £548 – a difference of 13.8%. That cost increase was higher than in any other region, with the UK average being 12.5% for that age group.
The price difference had narrowed to 10.4% across all regions by 2025, except in Northern Ireland where it sat at 11.6%.
In 2026, Northern Ireland is tied with London as the most expensive for over 65s who pay in instalments, with monthly payments costing 9.6% more than annual.
While the downward trend of lower monthly charges is positive, the data highlights the continued financial disadvantage faced by motorists who cannot afford a single annual payment.
Survey data from CompareNI.com revealed that many motorists are still unaware just how much more they are forking out by paying monthly.
Over half (51%) don’t know how much more they’re expected to pay, with only 35% correctly identifying an average 9-12% increase in price for paying monthly.
Some 53% of motorists feel it’s not fair that people who can’t afford to pay annually are being charged more.
The data analysis by CompareNI.com allows customers to see how much they could save by switching to an annual payment rather than monthly and the cost differences based on age, vehicle use and where they live.
The insurance experts also suggest reviewing all details on insurance forms carefully as some unexpected factors can affect pricing, including marital status.
Ian Wilson, car insurance expert and Managing Director at CompareNI.com said: “It is encouraging to see premium finance charges coming down in recent years, but drivers in Northern Ireland, particularly older motorists, are still being hit hardest when they pay their car insurance bills monthly.
“Many over 65s have a limited income and may not be able to afford a single payment of hundreds of pounds. Older drivers in NI are already paying more for car insurance than almost anywhere else in the UK, so for them to also face higher costs when it comes to monthly payments is a double blow.
“Our research also shows that many drivers don’t realise how much extra paying in monthly instalments is costing them. It’s important for both insurers and price comparison sites to have a clear, simple process so drivers, regardless of age or motoring experience, understand exactly what is being asked and why.
“There are always ways drivers can make savings when taking out car insurance, such as double checking the information provided on the form before submitting. Errors on seemingly minor things like marital status and job title could lead to missed savings.
“Other factors that can help reduce insurance costs include parking the vehicle on a driveway overnight if possible, lowering the annual mileage and never allowing a policy to auto-renew without shopping around for a better deal first.”
Northern Ireland remains one of the most expensive areas in the UK for car insurance, in part due to a poorer road safety record compared to Great Britain, with the region having a higher percentage of rural roads and limited public transport options.
Another key factor affecting insurance premiums is NI’s higher claim costs. This is partly down to whiplash reforms being introduced in England and Wales in 2021, with fixed tariffs on compensation for minor whiplash injuries. These measures have not yet been implemented in NI, meaning claims and legals costs here tend to be higher.