Consumer rights explained: Should I try to negotiate my car insurance premium or switch provider?

Q: My car insurance renewal has arrived, and the premium is €240 higher than last year, even though I haven't made a claim or changed my car. I've been with the same insurer for years. Is it worth trying to negotiate, or should I switch?

Michelle, Kildare

Michelle, you're certainly not alone. Many drivers are experiencing higher renewal quotes this year, even when they have a full no-claims bonus and their circumstances haven't changed. Recent figures from the Central Bank of Ireland show the average motor insurance premium rose to €655 in the first half of 2025, up 4% on the previous year, as rising repair costs, more expensive replacement parts and an increase in damage claims continue to put pressure on insurers.

Many motorists expected premiums to fall after the ban on price walking came into effect, but that's not quite how the rules work. The ban means insurers can't charge an existing customer more than they would charge a new customer with the same risk profile. However, it doesn't stop insurers increasing premiums altogether. Prices can still rise because of higher claims costs, inflation or changes in how insurers assess risk.

Your first step needs to be to get quotes from a range of insurers or a broker and compare like-for-like cover. Don’t accept the first renewal quote you receive. Look beyond the premium and check the excess, windscreen cover, breakdown assistance, courtesy car cover and any optional extras. Once you've gathered a few quotes, go back to your current insurer and ask if they can match or improve on a competitor's price. Many insurers are willing to review their renewal offer rather than lose a customer.

If you decide to switch, the process is usually straightforward. Your insurer should provide proof of your no-claims bonus with your renewal documents, which your new insurer will normally need. Before cancelling your existing policy, make sure your new cover is in place so there's no gap in your insurance. If you change your mind after switching, you generally have a 14-day cooling-off period to cancel your new policy. You should receive a refund, although the insurer may deduct the cost of the cover you've already used and any administration fee that applies.

Finally, don't leave it until the last minute. As soon as you renew your policy, add a calendar reminder for a few weeks before next year's renewal date to prompt you to start shopping around early, compare quotes and make the switch if you choose to do so. Also, take a look at the car insurance section on ccpc.ie to help you. It includes practical advice on comparing policies, understanding your renewal notice and choosing the cover that's right for you.

Originally published in the Sunday Independent on 9 Aug 2026: Your questions answered on Irish consumer rights | Irish Independent