Vehicle Size and Insurance Premiums: A Growing Concern
The trend towards larger vehicles could lead to higher insurance premiums for some drivers, according to CompareNI, a price comparison site. In a survey of 800 motorists in Northern Ireland, the company found that many respondents expressed concerns about the increasing size of vehicles on the road.
Among those surveyed, 15% cited fuel consumption as a reason for avoiding larger cars, while another 15% 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% of respondents preferred larger cars, citing a greater sense of security behind the wheel.
Despite the industry’s movement towards larger and more feature-rich models, most respondents appeared to favour smaller vehicles. A significant majority, 85%, believed that larger vehicles are more likely to come with higher insurance costs. However, it’s important to note that 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.
Other considerations in the motor insurance market include the rising interest in electric vehicles (EVs), though 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, such as upgraded audio systems, lane-keeping assistance, and driver monitoring technology, can also increase both the value of the vehicle and its potential theft risk, potentially leading to higher premiums.
The role of artificial intelligence in vehicle design is also growing, with features like automated braking and lane-change assistance becoming more common. While sensors that help manage distance between vehicles may improve safety, repairs to such systems can be costly, potentially affecting premiums.
Car ownership models are evolving as well, with subscription-based services gaining traction. These services offer access to a vehicle for a monthly fee that may include insurance, allowing users to switch vehicles during the subscription period and 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 suggests shifts in other areas of the motor insurance market. 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.
