Car Insurance

How to find cheap car insurance in Ireland

Whether you’re a young driver or an experienced motorist, here’s what you need to know about car insurance and how to choose good value cover for your car.

Part 1

How car insurance works

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Part 2

Types of car insurance

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Part 3

Car insurance costs

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Part 4

How to get cheaper cover

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Part 1

How car insurance works in Ireland

What is car insurance?

It’s compulsory insurance all motorists need to drive on Ireland’s roads.

Car insurance provides financial protection if you’re involved in an accident that results in damage. Some types of car insurance also covers you for fire, theft and personal injury.

Car damage is often expensive and proving responsibility for costs can be time consuming, so cover not only saves you money on repairs but also the hassle of dealing with liability when accidents happen.

The price of your cover is based on a range of factors and premiums are paid monthly or annually.

Is it a legal requirement?

Yes, you’re legally obliged to have motor insurance under the Road Traffic Act, 1961. As a minimum, you need to have third party cover. Everyone who drives a motor vehicle on Irish roads needs to buy it.

Driving without insurance is a criminal offence. You could get 5 penalty points with a fine of €5,000. It could also lead to disqualification or a prison sentence.

car insurance learner

Do you need cover when learning to drive?

Yes you do, but if you choose to learn to drive in a certified instructor’s car then you’ll normally be covered by their car insurance policy.

However, if you own a car and want driving practice or want to build up your no-claims bonus before you’ve passed your test, you’ll need to take out learner driver car insurance.

What if you’re driving someone else’s car?

You’ll need to be a “named driver” on a policy if you’re driving another person’s car.

If you’re driving your partner’s car you’ll need to make sure you are covered on their policy and if you’re learning in a parent’s car, they will need to add you to their policy before you can drive on the road.

Part 2

Types of car insurance in Ireland

There are three main types of car insurance which offer different levels of protection. The more fully you’re covered, the more you’ll pay for your premium.

3rd Party

The minimum level of cover, it compensates third parties if you cause an accident. Damage to your car won’t be covered.

3rd Party, Fire & Theft

Covers third parties plus protection for damage to your vehicle caused by fire or theft. Damage by vandalism isn’t covered.

Comprehensive

Covers all parties involved in accidents, including your car and belongings. Plus theft & damage caused by vandalism.

What about extra benefits?

You can pay extra for things that aren’t included in your policy but weigh up whether you really need them. It’s also worth checking you don’t already have add-ons included in your policy.

Here’s some of the add-ons you can get in Ireland

Are extras worth it?

If you think a benefit will give you peace of mind and you’ll use it in the event something goes wrong, buying policy add-ons is worth it if you can afford it.

However, first check whether you’re covered elsewhere, for instance, if you have key cover or a courtesy car as part of your breakdown assistance.

Insuring more than one vehicle

Many households now own more than one car. Alternatively, you may have a family car but ride a motorbike for leisure and a van for work. If this is the case, then multi-car insurance may be an ideal choice and the cheapest way to insure your vehicles.

Multi-car insurance allows you to insure more than one vehicle registered at the same address on a single policy. You can usually choose to insure each car with its own level of cover.

It’s worth shopping around and finding an insurer who can offer the best rates for a multi-vehicle household.

Motorbike Insurance

Insure your motorcycle

Motorbike insurance ensures financial cover if things go wrong but it can be pricey. Find out how to get cheap quotes & stay safe on the road.

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Van Insurance

Insure your commercial van

Rely on your van for work? The right cover can protect your finances & get you back on the road fast. Learn how to get the best van quotes.

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Classic Car Insurance

Insure your classic car

If you’re passionate about your classic car finding the best car insurance is crucial. Find out how to get the right policy to protect your pride and joy.

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Temporary or short term car insurance

This type of cover can last from one hour to several months. It’s useful for

  • Borrowing a car from friends or family member
  • Learner drivers practising before their test
  • Collecting or delivering a vehicle
  • Splitting driving duties on long journeys
  • Driving a classic or show car to an event
  • In an emergency

It’s handy if you need car insurance to borrow someone else’s car, drive one home after buying it, or for occasional use of a vehicle you keep off the road:

Although short term cover isn’t available in Ireland at the moment, temporary car policies are usually only offered as comprehensive cover.

Find out more about types of car insurance and which level of cover is right for you.

Types of car insurance

Part 3

How much car insurance costs

€595

The average cost of car insurance in Ireland

With comprehensive cover the most expensive and 3rd party the cheapest. The cost of car insurance has been falling since its peak in 2017.

What affects the price of car cover?

There are many things that affect the cost of cover and every insurer will have its own pricing formula and rules.

Here’s the main factors

  • YOUR AGE If you’re a young driver under 25, you’ll pay a lot more for cover. The younger and more inexperienced you are, the greater the risk of a crash so insurers will charge higher rates. Here’s how to get cheaper young driver car insurance.
  • YOUR LOCATION Where you live is one of the main factors affecting insurance costs. Urban areas are seen as higher risk than rural areas and if you live in a high crime area you’ll pay more. Insurers will also assess an area for traffic accidents and claim rates.
  • YOUR JOB If you have a job that’s considered high risk to insurers based on claim statistics then you’ll pay more. Lying about your job or class of use could invalidate your insurance, so check that your job title is correct.
  • YOUR MILEAGE If it’s above average (around 10,500 miles) you’ll probably pay more because the risk of an accident, breakdown or repair is greater. You’ll be asked about the class of use, so be accurate or your claim could be refused.
  • YOUR DRIVING EXPERIENCE The more years you have the better, and if you’ve got a no claims bonus (NCB), you’ll save even more. If you’re just starting out as a learner driver, here’s what you need to sort out.
  • YOUR CAR The make of your car and its size, safety and performance will dictate the insurance group of your car and impact the premium price. Economy cars with small engines are cheaper to insure than larger, more powerful cars. You’ll pay extra for any modifications to your car too.
  • YOUR EXCESS This is the amount you volunteer to pay against a claim - so the higher the excess, the more you could save on monthly premiums. It can make claiming expensive though.

Part 4

How to get cheaper car insurance

Look for discounts

Buy online, pick multi-car insurance or get a black box fitted to get a discount. Build your no claims bonus and reduce your premium with a no claims discount.

Downsize your car

Small, safe, newer cars in a low insurance group are the cheapest to insure. Powerful, high-performance cars with big engines are the most expensive.

Reduce your risk profile

You can’t change your age or location, but you can prove you’re a safe driver by taking an advanced driving course or having a black box installed.

Increase your excess

Opt to pay a higher excess and your monthly premium will be cheaper, but be ready to pay more towards your claim if you have an accident.

What is a no claims bonus?

It’s a discount on your car insurance that’s earned by remaining claim-free.

The level of discount depends on the number of consecutive years you go without making a claim on your insurance. The more years without claiming, the bigger your discount will be, although this may cap between 5 and ten years.

If you do make a claim, you may lose some or all of your no claims bonus, unless you’ve paid to protect it.

What is black box insurance?

It’s cover which uses telematics to monitor driving. Premiums are based on how safely you drive.

Telematics uses GPS technology to capture:

  • Journey data like travel time and distance plus the number of trips
  • Driving data like speed travelled, acceleration, braking, cornering and impact detection
  • Road data like elevation and road type

When you get black box car insurance, your insurer will arrange for the installation of a black box device.

What is a policy excess?

It’s the part of a claim that is paid by you, not the insurance company.

Car insurers usually require you to pay a compulsory excess which is the amount set by the insurer. You can also offer to pay a voluntary excess which means you’ll pay more towards your claim in the event of an accident but pay a reduced premium.

Car hire excess is the amount you have to pay if you damage your hire car. Rather than pay the car hire excess, you can choose to buy it independently which is often cheaper.

car insurance documents

Buying car insurance

You can save time and money by shopping around for quotes online.

There are often discounts online and you’ll be able to find a quote for most vehicles including classic cars, vans and motorbikes.

All major insurance providers in Ireland provide their own quotes and brokers will offer competitive quotes from a panel of insurers.

You’ll just need to provide a few details about yourself and the vehicle you drive, such as:

  • Your name, age and address
  • The make, model & year of your car
  • How you use your car and your annual mileage
  • Your claims and driving experience

Car insurance FAQs

Can you NCT a car without tax or insurance?

The National Car Test (NCT) is a basic test of your car’s roadworthiness. It’s compulsory and if you don’t have it, any car insurance is void.

However, you can put a car through the NCT inspection without tax or insurance.

Can you tax a car without insurance?

No, you must have a car insurance policy in place to tax your car and be prepared to show a current Certificate of Insurance.

Does the registered keeper have to insure the car?

Not necessarily. Every car insurance policy has an appointed main driver, but the main driver doesn’t necessarily have to be the same as the legal owner or the registered keeper.

If you are the main driver but not the keeper or legal owner you must inform the insurance company when you are getting quotes because it may affect the price.

Does car insurance cover driving in Northern Ireland?

Yes, you can drive in Northern Ireland and the UK and benefit from the same level of cover as you do in Ireland.

What is Open Drive insurance?

This type of policy allows other people to drive your car, providing they have your permission and meet insurance company requirements

You’ll typically need to be over 25 and have 2 years of no claims to qualify for open driving. The other driver may need to fulfil similar or stricter criteria, for example, 5 years no claims.

An open drive policy does not permit you to drive someone else’s car.

What is the punishment for driving without insurance?

Driving without insurance in Ireland is illegal and you could incur:

  • A fine of up to €5,000
  • 5 penalty points
  • Possible imprisonment up to 6 months.

Will being a disabled driver affect my car insurance?

No, insurance companies are not legally entitled to charge differently if a driver has a disability.

However, if you are a newly disabled driver, you must notify your insurance company of the new disability or ‘change in your health’. If your disability or health has worsened, you must also let your insurer know as soon as possible.