Car insurance premiums have continued to soar in price in recent years. For some drivers, such as teenage boys, the cost of car insurance may far outweigh the cost of purchasing a car. The average price of car insurance in Northern Ireland topped £490 in 2010, and prices are of a similar rate in Southern Ireland too. These prices equate to more than a 10% raise within the space of twelve months – one of the largest increases since the mid 1990s. As mentioned above, it is the younger drivers who are feeling the full force of these current trends, with some paying as much as €3500/£2662 for their first insurance premium.

In fact, this group of drivers saw their insurance premiums increase by more than the average of 10% in the last 12 months, which considering the price of the insurance actually increases the cost significantly. For instance, an adult of 41 with 10 years no claims discount may have been able to get a policy for €400 last year, but this year the same policy would cost €440, an increase of €40 – not too bad. However, a young person who paid €3000 last year, with 0 years no claims discount will this year have to pay (using the example of a 10% increase, although the raise is likely to have been larger) €3300, that is a massive increase of €300. Insurance costs are thus a big concern for younger drivers.

However, there are ways of insuring that drivers receive the most competitive prices. Firstly, compare car insurance quotes online. Once you establish the most competitive price, try phoning, or contacting the insurance company direct, they may be able to offer an even better price than the one listed. Driving experience is one of the key factors that will reduce the cost of your insurance. The more experienced you are as a driver, and the better you are (-judged by the frequency of your claims) the lower your insurance rates. A great way of increasing your driving experience, without paying too much on your insurance, is to become a named driver on somebody else’s policy. Many insurers allow named drivers to build up no claims discount, so by the time you come to buy your own policy, you should have a decent driving record and your insurance premiums will be lower.