Choosing your car insurance policy
What should you consider when choosing car insurance?
Choosing the right car insurance policy can make a real difference to your finances and peace of mind. This page explains the main types of car insurance in Ireland, what to consider before you buy and practical ways to cut your costs. Compare policy features, check what’s covered and excluded, and use our Motor insurance shopping around checklist for consumers to make a smarter decision.
Consider your needs, review restrictions, excess amounts and no claims bonus options. To save money, shop around for quotes, ask about discounts, consider paying in one go and keep your driving record clean. Always check the small print and make sure your cover matches your circumstances before you commit.
How do you choose the right policy for you?
Choosing the right policy depends on your needs and circumstances. For example, if your car is older or low in value, you may decide that comprehensive cover is not worth the extra cost. On the other hand, if you rely on your car daily or would struggle to replace it, a higher level of cover may be worthwhile.
Ask yourself:
- What type and level of cover best suits your needs?
- Do you need extra benefits like breakdown assistance or a courtesy car?
- Are there restrictions, such as only named drivers being covered?
- What each policy covers, the exclusions and the amount of the excess.
- Should you protect your no claims bonus?
Tips on how you can cut your car insurance costs
| Tips on cutting costs | More information |
|---|---|
Shop around and bargain | Get quotes from a number of insurance companies, including your current one, or use a broker. If you're using a broker, ask how many quotes they search for, whether they charge a fee and if they offer extra services – such as help with making a claim. Ask your current insurance company for a discount. Use the Motor insurance shopping around checklist for consumers. If you get a good quote, it’s often worth asking another insurer if they’ll match or beat it. |
Think about how you buy your insurance | Many insurance companies offer discounts when you buy online. If using a broker, find out how many quotes they will look for and if they charge a fee. |
Pay your insurance in one go | If you pay by monthly direct debit, you will usually be charged interest (this is often a separate credit agreement). This will increase the overall cost of your insurance. |
Get your full licence | You will be charged more if you have a provisional licence, so try to get your full licence as soon as you can. |
Try to be as realistic as possible when estimating the value of your car | If you have a claim, the insurance company will only pay what they consider to be the current market value of the car. For example, if you insure your car for €8,000 and its current market value is €10,000, you will only get 80% of the cost of the repairs or replacement if you make a claim. |
Avoid driving convictions and penalty points | Dangerous driving or drink driving can result in a higher premium or even insurance cover being refused. The number of penalty points you have can also increase your premium. |
Change where you park your car | You may be able to save money if you let your insurer know that you park your car in a locked garage. Insurers often prefer this to the car being parked on the street or in your driveway. Some areas will have higher claim rates, and you will pay more if you live in a city than in a rural area. |
Think about adding named drivers to your policy | Adding a named driver can increase your premium because of their age, for example, if you add a younger family member. In other cases, it can reduce your premium, for example, if the named driver has a good driving and claims history. |
Build up your no claims bonus | You can lower your premium if you haven’t made a claim or if no one has made a claim against you. |
Pay a higher excess | Some insurance companies give you the option of a cheaper premium if you opt for a higher excess. |
Choose your car wisely | In general, larger cars tend to have bigger engines, which can lead to higher insurance costs. Left-hand drive, convertible and modified cars are usually more expensive to insure. Always ask your insurer or broker for a premium quote before buying a car or switching cars mid-policy. |
Decide if you need to use your car for work – if so, you need different cover | It costs more to insure a car or van for commercial use than for personal use. You will usually have to pay commercial premium rates if you drive a van, even if it is only for domestic use. Check with your insurance company about what ‘use for work’ means in your policy and ask whether work-related items in your car are covered. |
Try to get insurance in your own name | Some insurance companies may not count your previous driving experience or no claims bonus if you haven’t held a policy in your own name or been listed as a named driver in the past one or two years. |
Young drivers | Insurers are cracking down on parents who insure a car in their own name to get a cheaper premium, even though their child is the main driver. This practice is known as ‘fronting’. If you're caught fronting, your insurer may cancel your policy, refuse a claim or make it harder for you to get insurance in future. |
What types of car insurance should you choose?
Third-party insurance
- This is the minimum legal requirement. It covers claims from other people for damage or injury you cause, but it does not cover your own vehicle.
Third-party, fire and theft
- Includes third-party cover plus protection for your car if it’s damaged by fire or stolen (including attempted theft). It does not cover accidental damage.
Comprehensive insurance
- Provides the highest level of cover, including accidental damage to your own vehicle.
For a closer look at these three types go to our Car insurance page.
