How your car insurance quote is calculated
Discover what factors affect your car insurance premium and the impact they have on the price of cover in Ireland.
Latest UpdateNew code will explain changes to car insurance prices
01/05/2026: More than 2 million policyholders will get clearer information about their car insurance prices under the Government’s new Motor Insurance Transparency Code.
At quotation and renewal, customers will receive a summary showing their previous and new premium, the price difference and the main reasons for any change.
They will also receive an annual overview explaining wider costs affecting insurance prices, such as repairs, claims, broker commission and legal costs. Insurers representing 98% of the private motor market have signed up to the code.
What affects the price of your premium?
Insurers set the price of your car insurance by assessing risk and the likelihood you’ll make a claim.
To calculate your quote, they’ll collect information about your:
- age
- location
- vehicle
- claims history
What information do insurers use?
Insurers weigh up a wide range of factors to determine how risky you are and what you could cost them. Their calculation is based on the personal information you provide and your driving history.
Alongside your personal data and driving experience, insurers assess risk by the type of car you drive and what you use it for. They do this by identifying your car insurance group and class of use.
Here’s a summary of factors which insurers use to calculate insurance premiums.
Your age
Age can make a big difference to price, with younger and less experienced drivers usually paying more. Chill’s July 2026 pricing index found drivers aged 17–19 paid €2,212 on average, compared with €494 for those aged 60–69. The average for drivers aged 75+ was €632.
Where you live
Location is one of the key factors affecting insurance costs. Urban areas are considered 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, so take steps to keep your car safe when parked.
What you do
Your occupation can affect the price you pay, as insurers assess the risks linked to different jobs. How you use your car is considered separately under its class of use, such as commuting or business driving.
Your driving experience
The longer you’re behind the wheel, the cheaper your premiums get, especially if you have a clean driving record and no criminal offences. Points on your driving licence will push up your premiums and make it harder to find cover
Your annual mileage
The further you drive, the greater the chance of an accident, so insurers may view higher mileage as a bigger risk. If you work locally or only drive at weekends, lower mileage could help reduce your premium.
Your claims history
Once you’ve made a claim, you could pay more at renewal, particularly if you’re found liable or make several claims. A claim may also reduce your no claims discount, depending on your insurer and whether it is protected.
Your cover level
You can choose from Third Party, Comprehensive or Third Party, Fire and Theft cover. The more comprehensive your cover, the higher the price can sometimes be, but it’s important to get the right cover for your driving habits, so don’t just opt for the cheapest level.
How you pay
Most insurers give you the option to pay annually or in monthly instalments. If you pay a monthly premium you’ll pay extra due to interest charges. It’s cheaper to pay upfront, but with the Central Bank revealing the average annual premium is around €655, this isn’t always possible.
The excess paid
Car insurers charge a compulsory excess you must pay towards a claim. In addition to this compulsory excess, a voluntary excess is the amount extra you agree to pay should you make a claim. You can get a cheaper premium if you opt to pay a higher amount of voluntary excess.
Car insurance group
Some insurers use a system which places cars into groups and classes according to their risk profile. Several major insurers use this method to assess which cars will likely generate the most costly insurance claims. Every make and model of car is assigned to one of 50 insurance groups.
Can you calculate car insurance without personal details?
Not accurately. A calculator can give you a rough estimate, but insurers need details about you, your driving history, your car and how you use it before they can work out a price.
Recent Irish figures show how much average premiums can vary:
These figures come from Chill’s July 2026 pricing index and cover policies sold between June 2025 and May 2026, including fees.
They’re useful as a guide, but your price will depend on your own details and how each insurer assesses them. A personalised car insurance quote is the best way to find out what you could pay.
Which car insurance factors can you change?
You can’t control every part of your quote, but some choices could help bring the price down.
Factors you can influence
Factors you can’t quickly change
Insurers weigh these factors differently, so it’s worth comparing like-for-like quotes even when your circumstances haven’t changed.
What are car insurance groups?
It’s a system some insurers use to assess the level of risk. The greater the risk, the higher the group number, while lower-risk vehicles belong in the lower groups.
The best-known example is the Association of British Insurers (ABI) Group Rating system used in the UK, which places cars in groups from 1 to 50.
Cars in lower insurance groups are generally cheaper to insure, while cars in higher groups may cost more. However, the group is only one factor used to calculate your quote.
How are car insurance groups rated?
Under the UK system, Thatcham Research assesses more than 125 details about a vehicle before giving it an advisory group rating.
These include:
- Purchase price
- Repair costs and times
- Parts prices
- Performance
- Safety features
- Security and theft protection
Irish insurers may consider similar factors, alongside their own claims data, when assessing a car.
Does Ireland use car insurance groups?
Car insurance providers in Ireland don’t have an industry-wide standard like the ABI Group Rating system used in the UK. Insurers generally keep their exact rating methods under wraps.
However, some Irish insurers use the 1-to-50 scale or a similar system when assessing different makes and models. AXA, for example, uses groups from 1 to 50, while other insurers may use their own vehicle ratings, claims data and pricing models.
This means a car’s insurance group can be a useful guide, but different insurers may assess the same car differently.
Are car insurance groups changing?
Thatcham launched Vehicle Risk Rating in September 2024 and is phasing it in to replace the UK’s 1-to-50 Group Rating system.
The newer system assesses cars across five areas:
- Damage
- Repair
- Safety
- Security
- Performance
This change applies to the UK rating system. Irish insurers will continue to decide how vehicle ratings and other information are used to calculate their quotes.
How to find your car insurance group
Irish insurers don’t use one industry-wide published grouping system, but this UK car insurance group checker can help you compare cars.
It shows ratings from 1 to 50 using vehicle information from Thatcham Research. Thatcham is replacing these groups with its new Vehicle Risk Rating system.
You’ll need to provide:
- The manufacturer
- The model
- The year
- The number of doors
- The fuel type
- The transmission
The result is only a guide, not the price you’ll pay in Ireland. For car safety ratings, visit Euro NCAP.
What are the cheapest cars to insure?
Cars in lower insurance groups are generally cheaper to insure because they tend to be less powerful and cheaper to repair.
The table below shows models with some of the lowest average premiums in recent UK quote data. It’s a useful guide when choosing a car, but the price you pay in Ireland will also depend on your details and insurer.
| Car make | Car model |
|---|---|
| Dacia | Sandero |
| Hyundai | i10 |
| Fiat | 500 |
| Kia | Picanto |
| Renault | Captur |
| Citroën | C3 |
| MINI | Hatch |
| Peugeot | 2008 |
| Škoda | Fabia |
| Citroën | C1 |
Based on fully comprehensive UK quotes analysed by Uswitch between September 2025 and February 2026. Last checked September 2026.
What is class of use?
How you use your vehicle also impacts the price of your premiums. This is called ‘class of use’ by insurers.
Most drivers will use their car for social, domestic and pleasure purposes (SDP) but more often than not, your car will also be used commuting to and from work.
You can also use your car for limited business purposes without buying commercial vehicle insurance. However, if you use your car or vehicle for business, you’ll need to declare this when you get quotes.
There are two broad classes of business use in Ireland, although different insurers may use different systems. Contact insurers directly if you’re unsure about your class of use.
The insurance company could refuse your claim if you don’t declare business use, so make sure you accurately describe how you intend to use your car.
Class 1 vs Class 2 car insurance
Class 1 usually covers occasional business journeys, while Class 2 may cover higher mileage or a wider range of business use, though exact cover varies by insurer.
Mileage limits and permitted drivers vary between insurers. For example, Allianz currently allows up to 2,000 business kilometres under Class 1 and 10,000 kilometres under Class 2.
Class 1
This allows you to use your car for:
- social, domestic & pleasure purposes
- commuting to work or place of study
- occasional journeys connected with your work
- visiting clients or travelling between workplaces
Class 2
This may cover the same as Class 1, plus:
- more frequent business journeys
- higher annual business mileage
- carrying goods or samples
- a spouse, named driver or employee using the car for the same business
Does Class 2 cover deliveries?
Not always. Class 2 may cover carrying goods or samples for your job, but delivering goods or carrying passengers for payment is treated differently.
If you use your car for courier work, food delivery or other hire-and-reward work, ask your insurer about specialist cover before you start.
Does car age affect the price of cover?
It depends. If you own a car over 10 years old you may find it hard to find an insurer who’ll cover your car and you may find that premiums are more expensive.
This is for several reasons, such as:
- Sourcing parts
- Repairs and maintenance can be more expensive
- Fewer safety features
On the other hand, a new car is more expensive to replace than an older car and could be more attractive to thieves so may cost more to insure.
Older cars that are classed as classic or vintage cars may be cheaper to insure. Visit our classic car cover page to learn more.
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