Car insurance
What is car insurance and how do you get it in Ireland?
Car insurance protects you, your car and others if something goes wrong. It is a legal requirement in Ireland and you must have at least third-party cover. To get car insurance, compare third‑party, third‑party fire and theft and comprehensive based on what each one covers, what is excluded and the excess you will pay. This page explains how to choose the right cover, how extras like no claims bonus/discount protection work and what insurers must tell you before selling you a policy.
Taking out car insurance
How do you make the right choices when arranging car insurance?
Understanding the different types of car insurance and what they cover is essential. There are three main types in Ireland. Each offers a different level of protection and comes with its own costs and benefits.
- Third-party is the basic level you need by law. It covers claims made by others for damage or injury you cause but does not cover your own vehicle.
- Third-party, fire and theft gives you extra cover for loss or damage to your car from fire or theft (attempted theft is also covered), but not accidental damage.
- Comprehensive insurance.
What does each type of insurance cover?
The tables below shows what is covered by each type of policy
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
What does comprehensive car insurance cover?
Comprehensive car insurance covers third-party, fire and theft and lets you claim for damage to your own car, no matter who caused the accident. This type of cover usually costs more than third-party, fire and theft.
The benefits you get can vary between insurance companies, so always check your policy for the full details. Some of the benefits you might get with comprehensive cover 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:
- This covers you for any damage you cause to another car or person while driving someone else’s car. It does not cover damage to the car you borrowed or personal injury to you if you cause an accident.
- This does not include cars owned by you or your partner. Some insurers have restrictions based on the engine size of the other car.
- The car must be taxed, have a valid NCT, and sometimes valid insurance. A few insurers may offer extra cover (like comprehensive protection) for borrowed cars – but this is rare and comes with strict conditions.
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 else should you check?
- When choosing car insurance, always check what your policy does and does not cover. The cheapest policy is not always the best value for your needs.
- Most insurance policies include an ‘excess’. You should always check how much it is. This is the first part of any claim you must pay yourself, usually up to a few hundred euro. You cannot claim for amounts less than the excess. A higher excess usually means a lower insurance premium.
- If you have bought your car under a personal contract plan (PCP) with a car dealer, the terms and conditions usually strongly recommend that you take out comprehensive car insurance.
What is excess?
Excess is the amount of money you have to pay yourself if you make an insurance claim. For example, if your car insurance policy has an excess of €250 and you make a claim for €1,000 worth of damage, you pay the first €250 and your insurer pays the remaining €750. The excess helps keep insurance costs lower, but means you always pay a set amount before your insurer covers the rest.
What are some examples of different types of car insurance?
What is a no claims bonus?
A No Claims Bonus, also called a No Claims Discount, gives you a discount on your car insurance premium for each year you hold a policy in your own name without making a claim or having a claim made against you. The discount only applies to the policyholder, not to named drivers on your policy.
How many years of no claims bonus can you earn?
Most insurers offer a maximum discount after five or six years of no claims. After this point, your discount does not increase further – whether you have eight or 15 years of no claims, the discount remains the same.
Some insurers may offer a higher discount for more than five years, but this must be clearly stated on your no claims bonus certificate.
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.
Managing your no claims bonus
- You can transfer your no claims bonus between insurance companies and between vehicles.
- If you own two cars, you must build up a separate bonus for each one.
- Some insurers may offer an introductory discount if you have a good claims history on your main vehicle.
- A full no claims bonus can significantly reduce your insurance costs.
- You may be able to pay to protect your bonus – options include:
- Full no claims bonus protection
- Step-back bonus protection
- No claims bonus protection for fire and theft claims
What are the different kinds of no claims bonus protection?
What is full no claims bonus protection?
This option means you won’t lose any of your no claims bonus if a claim is made against your policy. However, you must still disclose the claim, and it may result in a loading on your premium.
Always check your policy documents for exclusions – some insurers only protect your bonus for fire and theft claims or for a limited number of claims over a set period.
Why no claims bonus protection matters
Below are two different scenarios which show the financial impact of protecting or not protecting your no claims bonus.
What is step-back bonus protection?
With step-back protection, you won’t lose your entire bonus if you make a claim. Instead, your discount is reduced by a step, depending on your insurer’s terms.
What is no claims bonus for fire and theft claims?
This means your no claims bonus is protected if you make a claim for fire or theft only.
If you find yourself in a position where you need to make a claim on your insurance, you can find a step-by-step guide here to help you.
What insurance companies should tell you before buying insurance
Under the Central Bank of Ireland's Consumer Protection Code insurance companies must:
- Tell you how long their quote is valid for and make sure you are aware of any special conditions or restrictions that apply to the cover they are offering you
- Inform you of any discounts that apply or any extra premium being charged when they give you a quote
- Tell you about any terms and conditions that apply to any discounts
- Explain any difference in cost between paying the premium by way of a lump sum or in instalments
- Let you know that your cover or any claim you make could be affected if you give incorrect or incomplete information when applying for cover
- Make it clear that you have a cooling off period of 14 days after you agree to buy the insurance policy
- Issue your policy document within 5 working days of providing you with cover
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, who may be able to help you get cover.
They will get an insurance quote for you (usually from the first company you approached) unless there are public policy reasons why you should not be given car insurance. It is important that you keep note of the order in which you received your quotes.
You can also contact the Declined Cases Committee if you feel a quote is too high or the conditions attached are so severe that it amounts to a refusal to insure you.
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.
What is the driver number requirement?
From 31 March 2025, when taking out or renewing motor insurance in Ireland, you must now provide:
- Your Driver Number (found in section 4(d) of a plastic driving licence or field no.5 of a paper licence)
- The Driver Numbers of any named drivers on your policy
- If you are driving on a non-Irish licence, you will be required to provide a physical copy of your licence as verification to your insurer or broker.
Insurers must validate this information against the Department of Transport’s National Vehicle and Driver File before issuing a policy.
How do you make a complaint about car insurance in Ireland?
If you’re not satisfied with your insurer, you can complain directly to them. This page explains what to do if you’re unhappy with their response, including your right to contact the Financial Services and Pensions Ombudsman or get more information on how to how to make a complaint to a financial services company.
