Motorists in Northern Ireland continue to face higher car insurance costs than drivers elsewhere in the UK, with South Antrim MP Robin Swann urging ministers to act. Swann (pictured) has pressed Justice Minister Naomi Long MLA and Chancellor Rachel Reeves MP to address what he described as a "significant pressure" on households. He confirmed that he has also submitted recommendations to the government's new Car Insurance Taskforce, which is reviewing options to reduce costs.
According to a report from online publication Love Ballymena, one of Swann's key proposals is the introduction of an online injury claims portal, similar to the system already operating in England and Wales. That scheme allows drivers to settle lower-value injury claims of up to £5,000 without going through the courts, with insurers managing the process directly. Swann said adopting a comparable model in Northern Ireland would help reduce legal expenses, ease pressure on the courts, and create downward pressure on premiums.
He also called on the Treasury to regulate claims management companies (CMCs) in Northern Ireland, which are not currently subject to Financial Conduct Authority oversight.
According to the Association of British Insurers (ABI), these firms can take between 15% and 30% of compensation payments, adding to overall claims costs and pushing premiums higher. Swann said extending FCA regulation would close this gap in consumer protection.
The data underline the problem. CompareNI reported average premiums of £599 in Northern Ireland in Q1 2025, though Confused.com put the figure higher at £852, above the UK average of £757. Hellosafe estimated an even wider gap, with Northern Ireland at £931 compared with £774 nationally. The Belfast Telegraph recently reported average premiums breaking £1,000 for the first time, compared with £995 across the UK. Younger drivers face the steepest costs, with 17–24 year olds paying close to £1,500 on average, according to CompareNI.
The ABI has said that multiple factors contribute to Northern Ireland’s higher prices, including a smaller pool of insurers, higher levels of personal injury claims, and the absence of reforms such as the whiplash portal used in England and Wales.
A spokesperson for the trade body said tackling structural differences in the legal and claims environment will be key to bringing premiums closer to the UK average.
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