Adopting current vehicle trends could result in higher insurance premiums for some drivers, according to price comparison site CompareNI.
In a survey of 800 motorists in Northern Ireland, CompareNI found that many respondents expressed concerns about the increasing size of vehicles. Among those surveyed, 15% cited fuel consumption as a reason for avoiding larger cars, while another 15% said they were deterred by purchase costs. A further 14% referenced the potential for higher insurance premiums, and 11% said larger vehicles were more difficult to park.
Only 11% said they preferred larger cars, citing a greater sense of security behind the wheel. Despite industry movement towards larger and more feature-rich models, most respondents appeared to favour smaller vehicles.
A majority, or 85%, said they believed that larger vehicles are more likely to come with higher insurance costs. However, vehicle size alone does not directly determine premiums. Costs may increase due to factors such as more complex technology, stronger engines, and higher retail prices — all of which can influence the overall insurance risk.
Electric vehicles (EVs) continue to gain interest, though CompareNI noted that certain challenges may affect ownership costs, including insurance. Battery replacement, for example, can range from £4,000 to £16,500 depending on the model and battery size.
Advanced features in newer vehicles may also influence premiums. Systems such as upgraded audio, lane-keeping assistance, and driver monitoring technology can increase both the value of the vehicle and its potential theft risk, which in turn may increase premiums.
Meanwhile, artificial intelligence is also playing a growing role in vehicle design, including automated braking and lane-change assistance. Sensors that help manage distance between vehicles may improve safety, but repairs to such systems can be costly, potentially affecting premiums.
Car ownership models are also evolving. Subscription-based services are gaining traction, offering access to a vehicle for a monthly fee that may include insurance. These arrangements often allow users to switch vehicles during the subscription period, presenting an alternative to traditional ownership.
“As our survey has pointed out, there are a lot of hot new car trends for 2025 worth debating,” said Ian Wilson, managing director of CompareNI. “It’s important though for all drivers to make sure they get as competitive an insurance policy as possible, no matter what enhancements their vehicle will adopt.”
Recent data also suggested shifts in other areas of the motor insurance market as well.
Van insurance premiums, for example, have started to fall after rising 1.6% in the year to February, according to the latest Consumer Intelligence Van Insurance Price Index.
A 0.8% drop in quoted premiums over the past three months points to increased market competition. Drivers using vans for work saw premiums fall by 0.7% over the past six months, while under-25s recorded a 0.9% decline over the past year.
