Car insurance
What types of car insurance are there?
Car insurance protects you, your car and others if something goes wrong. Legally, you must have at least third-party cover, which covers injury or damage you cause to other people or their property but not damage to your own car.
Third-party, fire and theft adds cover if your car is stolen or damaged by fire. Comprehensive insurance provides the broadest level of cover: it includes third-party, fire and theft protection and also covers accidental damage to your own car, regardless of who caused the accident. Remember, the cheapest policy is not always the best value for your needs.
What does each type of car insurance cover?
The tables below compare what each type covers.
Claims by another person:
| What's covered | Third party | Third party, fire and theft | Comprehensive |
|---|---|---|---|
| Damage to their car | ✅ | ✅ | ✅ |
| Damage to their property (e.g. wall, bicycle) | ✅ | ✅ | ✅ |
| Personal injury | ✅ | ✅ | ✅ |
Claims by you:
| What's covered | Third party | Third party, fire and theft | Comprehensive |
|---|---|---|---|
| Damage to your car from fire or theft | ❌ | ✅ | ✅ |
| Theft of items from your car | ❌ | ❌ | ✅* |
| Damage to your own property (e.g. wall, fence) | ❌ | ❌ | ✅ |
| Personal injury | ❌ | ❌ | ✅* |
*You will need to check the policy document
Key car insurance terms you need to know
These two terms can affect what you pay and what happens if you make a claim.
What is an excess?
An excess is the amount you pay towards a claim before your insurer pays the rest. For example, with a €250 excess on a €1,000 claim, you pay €250 and your insurer pays €750.
What is a no claims bonus?
A no claims bonus, also called a no claims discount, is a discount on your premium for each year you hold a policy in your own name without a claim. It applies to the policyholder, not named drivers, and a claim may reduce or remove it.
What happens if you make a claim?
Your bonus may be reduced or lost if you make a claim or if a claim is made against you – even if you were not at fault. If the insurer can recover their costs from the other party, your bonus may be restored.
Can you transfer or protect your no claims bonus?
You can usually transfer your no claims bonus between insurers and vehicles, but you need a separate bonus for each car you own. You may also be able to pay to protect some or all of your bonus if you make a claim. Check the protection and conditions offered by your insurer.
What extra cover might comprehensive insurance include?
Comprehensive policies may include additional benefits, but these vary between insurers. Always check your policy to understand what is included, the limits that apply and whether you have to pay an excess. Some of the benefits you might get include:
Windscreen and glass cover
Some insurers can charge an excess for these claims.
Cover for damaged or stolen personal belongings
This usually applies to items stolen from a locked boot or glove compartment. It is not standard cover, so check your policy documentation for details.
Recovery service and emergency breakdown assistance
This is not always included as standard. The age of your car can also affect whether you get this cover.
Replacement or hire car
The cost may be covered if your car is off the road after an accident, but usually only for a short time.
Driving other people’s cars
Some comprehensive policies allow you to drive another person’s car, usually with third-party cover only and subject to strict conditions. This may not cover damage to the borrowed car or injury to you. Check your policy before driving another car.
No claims bonus protection:
- No claims bonus protection is an optional extra you can add to your car insurance policy. It lets you keep your no claims bonus even if you make a claim.
- Step-back protection means that if you make a claim, you only lose part of your no claims bonus, not all of it. For example, if you have five years’ no claims bonus and make a claim, you might drop back to three years instead of losing your discount completely.
Named driver on your car
You can add someone else, such as your son or daughter, to drive your car. As a named driver, they will be covered under your policy.
Open driving
This allows anyone with a full driving licence to drive your car with your permission.
Driver personal accident cover
This type of cover provides compensation if the driver is seriously injured or dies in a car accident – even if they were at fault. Many people think comprehensive cover will pay your medical expenses and injuries if you are hurt in an accident. This is not always included and there may be very limited cover. Always check this with your insurance provider.
What should your insurer tell you before you buy?
Under the Central Bank of Ireland’s Consumer Protection Code, your insurer must tell you:
- How long the quote is valid and any special conditions or restrictions
- About any discounts, extra premium or payment costs that apply
- That incorrect or incomplete information may affect your cover or a claim
- About your 14-day cooling-off period
- Your insurer must issue your policy document within five working days of providing cover
What Driver Number information must you provide?
From 31 March 2025, you must provide your Driver Number and the Driver Numbers of any named drivers. If you use a non-Irish licence, you must provide a physical copy to the insurer or broker. Insurers must validate the information against the Department of Transport’s National Vehicle and Driver File.
What if you are refused car insurance?
Insurers can refuse to sell you car insurance, provided they are not in breach of equality law. If you are refused, the insurer must give you written reasons within five business days.
If you have been refused by three or more insurers, you can contact the Declined Cases Committee of Insurance Ireland, which may be able to help you get cover. Keep a record of the order in which you received the refusals.
You can also contact the committee if a quote is so high, or its conditions so severe, that it amounts to a refusal.
Is your car insured abroad?
Most EU-based car insurance policies provide third-party cover in any EU country for up to 31 days. If you plan to travel outside the EU or want additional cover, check with your insurer before you go. Always tell your insurer if you plan to take your car abroad and confirm what is covered.
What should you do next?
- Once you understand the different levels of cover, read Choosing your car insurance policy to find out what to consider when choosing a policy.
- When you are ready to shop around, Getting insurance quotes explains how to compare policies and quotes and what to check before you buy.
- When your policy is due to end, Renewing your car insurance explains your renewal documents, what to check and how to switch insurer.
How do you make a complaint about car insurance?
If you are not satisfied with your insurer, complain directly to the insurer first. If you are unhappy with the response, you may be able to contact the Financial Services and Pensions Ombudsman.
Find out more about how to make a complaint.
