Do you live in Northern Ireland? If so, and you own a car, you might not have realised it but the cost of insuring your car is actually 11% higher than in England, Scotland or Wales!
Back in 2011, the Belfast Telegraph posted up an interesting article on their website about how many people in Northern Ireland could even be paying double the price of car insurance against the same profile of driver living in the south of England!
What causes car insurance to be so expensive in Northern Ireland?
There is no clear definitive answer to this question unfortunately, but many industry experts have analysed car insurance data and have come up with the following possible reasons:
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Location – there are many rural parts of Northern Ireland, and although you would like to think that these picturesque rural areas would not attract a high premium due to the lower risk of theft or accident damage, for example, insurance policies tend to become more pricey than in suburban or inner-city areas;
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High personal injury compensation payouts – compared with England, Scotland and Wales, motorists in Northern Ireland usually end up with much higher compensation payouts. So, for example, if you had a car accident and lost an eye, in the rest of the United Kingdom you could be paid a minimum of £30,000 compensation, but in Northern Ireland you could be paid a minimum compensation level of more than £60,000, which is effectively double the payout. Also, in Northern Ireland, the court system decides the payout amounts, not the insurance companies as in the rest of the UK;
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Motorists not seeking out the best deals – unlike their counterparts across the Irish Sea, people living in Northern Ireland do not take the time to compare insurance quotes and find the best deals for their car insurance.
Here are some ways that you can help to cut down on your car insurance in Northern Ireland:
Consider getting an insurance-friendly car
Many people in Northern Ireland will happily drive around in cheap, second hand cars which might have a high insurance group because of the make and model of the car, or perhaps because of the thirsty powerhouse it has under the bonnet!
Unless you have a real requirement to drive around in an 8-cylinder behemoth, then you should consider downgrading to something that is cheaper to insure. The added bonus of doing so is the fact that your fuel economy will be improved too, so you’ll be saving even more money!
Shop around for the best car insurance deals
As I mentioned earlier in this blog post, a surprising number of people in Northern Ireland don’t actually shop around for the best car insurance deals, instead opting to just stay loyal to the same car insurance company or not really doing any research into the subject.
When it’s time for renewal, you should be going online and getting lots of car insurance quotes from various websites (including comparison engines) – you would be surprised by the amount of money you could be saving!