Auto Insurance In Ireland: What's The Cost?

The cost of auto insurance in Ireland depends on a variety of factors, including age, vehicle type, job title, claims history, postcode, annual mileage, and vehicle modifications. The average cost of car insurance in Ireland varies by region, with Connacht having the lowest average premium price at €638 and Leinster the highest at €700. The type of insurance policy chosen, such as comprehensive, third-party, fire and theft, or black box insurance, also impacts the overall cost. Additionally, factors such as parking in a safe location, paying annually instead of monthly, and adding a named driver can help reduce insurance premiums.

How much does car insurance cost in Ireland?

The cost of car insurance in Ireland depends on a wide range of factors, and can vary significantly.

Factors Affecting Car Insurance Costs

Insurers will consider a variety of components when determining the cost of car insurance, including:

• The age of the driver: Younger drivers, especially those aged 17-29, are considered 'riskier' and tend to pay more for their premiums. This is due to their lack of driving experience, with 1 in 5 young drivers being involved in an accident within six months of passing their test. However, drivers over 70 also tend to pay more as they are considered higher-risk due to potential health issues and slower reaction times.
• Driving experience: The longer a driver has been on the road, the lower their insurance costs are likely to be, provided they have not made any claims.
• No-claims history: A no-claims discount is given to drivers with a claims-free record, and this can build up over time to reduce premiums.
• Type of vehicle: The make and model of the car, its value, age, safety equipment, security features, and susceptibility to accidental damage are all considered. Newer cars with smaller engines are generally cheaper to insure.
• Location: Living in a city with higher crime rates and more traffic can increase premiums. Certain rural counties in Ireland also have higher insurance premiums due to higher claim rates.
• Occupation: A driver's job can impact their insurance costs, as certain occupations are deemed riskier. For example, prison officers have the cheapest car insurance in Ireland, at an average premium of €413.
• Mileage: The number of kilometres driven per year can affect insurance costs.
• Add-ons: Any additional benefits included in the policy, such as breakdown assistance or windscreen cover, will increase the overall cost.

Average Costs

According to the Central Statistics Office, the average car premium in August 2024 was €781, a decrease of 14% from August 2016 when it was €909. This is the biggest drop in motor insurance costs since 2015. AIG offers car insurance in Ireland starting from €280, while Chill Insurance customers saved an average of €190 when switching to their services.

How does my age affect my premium?

Age is a primary factor in determining the cost of car insurance in Ireland. Younger drivers, especially those under 25, are considered "high risk" and are likely to pay more for their premiums. This is because they are less experienced and are more prone to accidents. In fact, 1 in 5 young drivers are said to be involved in a car accident within six months of passing their test. The average insurance cost for drivers between the ages of 20 and 29 is around €1,143 per year.

However, this is not to say that older drivers fare better. Drivers over the age of 70 also pay more for insurance. This is due to factors such as vision or hearing loss, and slower response times, which make older drivers more likely to be involved in accidents. Additionally, claims are less likely to succeed once the driver reaches 75 years of age.

While age is a significant factor, it is important to remember that other factors also contribute to the cost of car insurance in Ireland. These include the type of car, location, coverage, usage, and driving history.

What types of car insurance are there?

There are three main types of car insurance in Ireland, each offering different levels of protection. The more comprehensive the cover, the higher the premium tends to be.

Third-Party Only

Third-party insurance is the minimum legal level of car insurance in Ireland. It covers:

• Damage to someone else’s car or property
• Injury caused to another person
• Injury caused to your passengers

However, it does not cover any damage to your car or property.

Third-Party, Fire and Theft

This type of insurance includes all the benefits of third-party cover and also protects your vehicle in the event of fire or theft. It covers:

• Damage to someone else’s car or property
• Injury caused to another person
• Injury caused to your passengers
• Theft and theft damage

Comprehensive Insurance

Comprehensive insurance offers the most complete financial protection for you and your vehicle. It covers:

• Theft and theft damage
• Damage to someone else’s car or property
• Injury caused to another person
• Injury caused to your passengers
• Damage to your car caused by vandalism
• Accidental damage to your car (even if it’s your fault)

Comprehensive insurance also usually includes some extra benefits as standard, such as breakdown rescue cover, and you can pay for additional benefits such as legal expenses cover.

How can I reduce my premium?

There are several ways to reduce your premium. Here are some tips to help you get the best deal on your car insurance:

Drive safely and avoid distracted driving

As insurance premiums are calculated based on the risk of a claim, being seen as a safer and less risky driver can help lower your premium. Avoid penalty points by driving below the speed limit, obeying traffic lights, and keeping your phone away while driving.

Choose your car wisely

The type of car you drive significantly influences your insurance rates. Smaller, less powerful, and newer cars are generally cheaper to insure. Consider the insurance costs before purchasing your car, factoring in the size, value, and engine power.

Increase your excess

The excess is the amount you pay towards any claim. By agreeing to pay a higher excess, you can often reduce your premium. Just make sure that the excess amount is affordable in case you need to make a claim.

Build your no-claims bonus

If you have a history of safe driving with no claims, you may be eligible for a no-claims bonus, which can significantly reduce your premium. Focus on building up your no-claims bonus over time to maximize your savings.

Limit your mileage

Reducing the distance you drive each year can lower your premium. Inform your insurer if you start working from home or commute less, as this may result in a lower premium.

Add an additional driver to your policy

Adding another driver to your policy, such as your spouse or partner, can help reduce the cost of your premiums. However, ensure that the additional driver has a clean driving record.

Pay annually instead of monthly

Paying your insurance premium annually, if you can afford it, is usually cheaper than paying in monthly instalments. Paying upfront can save you money by avoiding the added interest that comes with monthly payments.

Check for discounts

Inquire about any available discounts with your insurer. Some companies offer discounts for various reasons, such as having multiple insurance products with them or being a member of certain organizations.

Compare insurance quotes

Don't settle for the first insurance quote you receive. Use online comparison tools or contact different insurance companies directly to find the most competitive rates. Shopping around can help you find the best deal on your car insurance.

What factors affect the cost of my insurance?

The cost of car insurance in Ireland is calculated based on several factors, including age, vehicle type, location, driving experience, and claims history. Here's a detailed overview:

Age and Driving Experience:

Younger drivers under 25 and older drivers over 65 or 70 are often considered higher-risk by insurers due to the likelihood of accidents. As a result, they typically pay higher insurance premiums. On the other hand, premiums usually decrease once a driver turns 25 and have more years of safe driving experience.

Vehicle Type and Details:

The make, model, age, and engine size of your car play a significant role in determining insurance costs. High-performance, luxury, or newer vehicles tend to have higher premiums because they are more expensive to repair or replace. Additionally, older cars may be seen as riskier and cost more to insure due to higher maintenance and repair costs.

Location:

Urban areas, particularly those with high crime rates or higher accident and claim rates, often result in higher insurance premiums. Rural and suburban areas generally have lower insurance costs.

Driving History and Claims History:

A clean driving record with no accidents, traffic violations, or claims will lead to lower insurance rates. Conversely, multiple claims or a history of accidents will drive up your premiums.

Usage and Mileage:

Insurers consider the purpose for which you use your car and the number of miles you drive annually. If you only drive occasionally or for short distances, you may qualify for a lower rate. On the other hand, using your vehicle for business purposes or driving long distances daily can increase your premium.

No Claims Discount:

Maintaining a no claims history can result in significant discounts on your insurance premium. However, making a claim may result in losing your no claims discount and paying higher rates at renewal.

Type of Coverage:

The type of insurance coverage you choose also affects the cost. Third-party insurance, which covers damage to others, is the minimum required and is typically the cheapest. Comprehensive insurance, which covers damage to your own vehicle in addition to third-party liability, is more expensive but provides fuller protection.

Payment Options:

Insurance companies usually offer annual or monthly payment options. Paying monthly often incurs additional interest charges, making it more expensive than paying annually.

Excess:

Insurers may require you to pay a compulsory excess towards a claim, and you can also choose to pay a voluntary excess to reduce your premium.

Penalty Points:

Penalty points on your driving licence can significantly impact your insurance costs. While a few points may not affect your premium, having four or more points can substantially increase your insurance rates.

Job and Class of Use:

Your occupation and how you use your vehicle can also influence insurance costs. Jobs that involve high-risk activities or a significant amount of driving may result in higher premiums. Additionally, using your car for business purposes, beyond just commuting, can further increase the cost.

Parking and Storage:

The location where you park and store your car is another factor. Insurers consider it safer to park in a private space, such as a driveway or garage, and therefore offer lower premiums for such locations compared to parking on public roads or in public car parks.

Frequently asked questions