A Comprehensive Guide to Affordable Car Insurance In Ireland

Affordable Car Insurance in Ireland

Finding affordable car insurance can feel like a minefield. With so many options  it can be a challenge to find the right insurance policy for you and your circumstances. Our comprehensive guide to affordable car insurance in Ireland will provide you with the key information you need to make a decision, including the factors which contribute to your premium and tips on how to make it more affordable.  

Why do Car Insurance Premiums go up and down?

There are various factors that contribute to your premium.

Insurance works by accumulating the premiums paid by all policyholders to cover the claims of a few people. Insurers set premiums that factor in the expected total cost of potential claims including legal and medical costs, which fluctuate over the years. So the cost of insurance generally reflects the level of claims and awards available in the jurisdiction.

Even though there is evidence that claims costs in Ireland are dropping, it is important to understand how claims can impact you and your premium. The overall motor insurance market may continue to see changes in the claims climate which will ultimately affect your premium. As a broker, Mike Murphy “rebroke” every renewal policy to achieve the most cost-effective policy for their customers. 

There are other factors that will affect the cost of your car insurance, such as the government levy which is currently 7%, the type of car you drive, driver risk and the car policy type you choose.

What Factors Influence Car Insurance Costs?

Car insurance costs can change depending on what type of cover you have. Exploring all of your options is vital to finding the most affordable car insurance to suit your needs and requirements, which are often unique.

There are three types of motor insurance available in Ireland:

1. Third-Party Insurance:
 If you are at fault in an incident that occurred, third-party insurance will only compensate the other affected parties, including vehicle damage or any injuries they sustain. You won't be compensated for damage to your own vehicle or personal injury. It is important to note that Third-Party Insurance is the minimum level of cover required to drive a car in Ireland and is therefore compulsory.

2.  Third-Party Fire & Theft: It offers the same level of protection as third-party   insurance but includes cover if your car is stolen or damaged by fire. It does not cover accidental damage to your own vehicle.

3. Fully Comprehensive: Offers the same cover as Third-Party Fire & Theft, and also enables you to claim for accidental damage to your own vehicle.

Finding the most affordable car insurance in Ireland is a balancing act between, on the one hand, finding a cheap option and on the other finding the option that is going to suit you. We can’t predict what is going to happen in the future. So, choosing the most comprehensive policy for the cheapest price is the ideal outcome!

So, what other factors contribute to your car insurance premium?

  • Level of cover
  • Your age
  • The type of license you hold
  • Age of the car
  • Type of car and engine size
  • How you use the car
  • Where you live
  • Penalty points
Tips For Getting Cheaper Car Insurance


1. Choose the right cover:
as mentioned above, there are three types of cover available in Ireland. Finding the right one is of paramount importance.

2.  Use a broker: a broker has the expertise and skill to find you the best possible policy on the market. They will help you to weigh up your options whilst taking into consideration exactly what your requirements are.

3. Pay Your Premium in Full: all motor insurers in Ireland will have the option to pay month-to-month. Although it is more cost-effective to pay annually, if your premium is high, you are less likely to have that much cash on hand. Consider how much of a deposit you can pay upfront, with the balance paid monthly.

4. NCB (No Claims Bonus): your NCB is a discount given by the insurance company for claims-free driving. The longer that you do not claim on your policy, the bigger the bonus becomes. Often there will be a cap on the number of years the discount applies to. Most will implement a 9-year cap.

5. Reduce your use: the more mileage you do each year in your vehicle and its overall condition will have an impact on your premium. It may be possible to reduce the cost of your insurance if you have lower annual mileage. The average mileage in Ireland is 10,000 to 12,000kms.

6. Voluntary Excess: You can reduce your premium by agreeing to a higher excess. A compulsory excess is an amount set by the insurer and is ultimately the amount you’ll personally pay should you submit a claim. However, you can voluntarily increase your excess which, in turn, reduces your premium. Keep in mind what your compulsory excess is before agreeing to a voluntary excess so that you know how much in total you are liable for.

7. Avoid Penalty Points: having penalty points will inevitably add to your premium. You can avoid having points added to your license by not speeding, not driving under the influence, not using your mobile phone while driving, and obeying traffic laws. Find the full list of offenses here

8. Pick the right car: each car is categorised into 1 of 50 groups. This helps the insurer figure out what premium to charge. Large, powerful cars are generally more expensive to insure than small cars. Consider this before taking out a car insurance policy.

Multiple factors combined will have an impact on your premium. For example, a person with over nine years NCB (no claims bonus), no penalty points and a 2-litre engine will have a lower premium than another person with 0 years NCB but also driving a 2-litre engine.

Affordable Car Insurance Tips for Young Drivers

Many of the above general tips will also apply to young drivers. However, here is extra advice for any motorist under 25 years old.


1. Become a named driver: when you’re first starting out, it can be expensive to get onto the road. Before purchasing your own car you may want to consider becoming a named driver on your parent's car first. This will allow you to get some valuable practice while being covered under their policy. The parent will need to contact the Insurance Company or Broker to add you to their policy.

2. Telematics / Black Box Insurance: telematics can be used to help reduce your premium by tracking and gathering information about how the car is driven. This information is collected by a black box and can be assessed by the insurer. Based on that, the insurance company or broker will find you the best possible insurance. The safer the driver you are, the better. Understand all of the terms and conditions of black box insurance, as if you break them, the price of your premium can quickly increase.


3. Get your full license: having a full license will help you to get more affordable car insurance. Try to fast-track booking your test before seeking out insurance. Become a named driver, as detailed above, in the meantime.


4. Add an experienced driver to your cover: adding a more experienced driver with no penalty points or claims could reduce your premium if they have been named as a secondary driver. It is no harm to ask your broker when discussing your options. Mike Murphy is up to speed on all Young Driver Insurance requirements and will advise you accordingly.


5. Complete an advanced driving course: completing an advanced driving course will not only help you reduce your premium, but it also has a variety of other benefits, such as:

 

“Significantly reducing the risk of having a crash.

Learning how to improve Fuel Consumption.

Earning Insurance Discounts.

Reducing wear and tear on their vehicle, and

Reducing the risks of Driver Fatigue.”

Source: https://www.advanced-driving.ie/ 


Advice for EU License Holders on Getting Affordable Car Insurance in Ireland  


EU licenses are accepted as valid driver's licenses in Ireland. You can go through the process of transferring your license to an Irish one if you plan on staying in the country. You will need to fill out an application form, supply personal information and pay a €55 fee. Find more details on how to do this from the NDLS (National Drivers License Service)

Citizens Information provides details about how Ukrainian citizens can legally drive in Ireland under the “Temporary Protection Directive”. More information can be found on this HERE.


Is There Affordable Car Insurance for Imported Cars?  

It is essential that you do your research before buying an imported car. You’ll need to ensure you have the correct tax in place. The Vehicle Registration Tax or VRT may not have been included, so double-check! Next, have an NCT done (National Car Testing Service). An up-to-date NCT is required to take out car insurance policies. Although you may expect to pay a high premium if your car is imported, working with a broker can give you the best chances of finding the lowest premium.

 

Some terms you could be aware of when exploring if an imported car is worth it:

  1. Grey import: vehicles that are new or used automobiles and motorcycles lawfully imported from another country via routes other than the manufacturer's official supply system.
  2. Parallel import: vehicles designed for the European Union market. They are built to meet the necessary safety and environmental standards, but they could have been sold by a non-UK European dealer.

There are so many factors that are considered when insuring a car, you’ll find more information to consider HERE.


Affordable Car Insurance with Mike Murphy

What is a broker?  

An insurance broker is a Central Bank of Ireland regulated Financial Advisor. There are numerous benefits to working with an Insurance Broker. Not only do you gain access to expert car insurance knowledge, but they also serve as a single point of contact for obtaining quotes from multiple insurers which will save you time, effort and stress. At Mike Murphy Insurance we review over 15 insurers and 20 products so that a full comprehensive comparison can be made and the best choice selected.

What do we offer?

Car Insurance: we have the expertise to find you the best car insurance quotes we can. We always aim to provide a personalised level of assistance while leveraging our knowledge and expertise, so you can be confident you're getting the best deal, whether that be for Third-Party insurance, Third-Party Fire & Theft or Fully Comprehensive Insurance.

Young Drivers’ Insurance: insurance premiums are generally higher for those under 25. Not only can following the tips above help to get you the cheapest possible policy but working with a broker like Mike Murphy Insurance will mean you have someone on your side with your best interest. We search the market to find the most affordable car insurance so you can get on the road asap.

Finding Affordable Car Insurance: A Conclusion

If you are to take just one piece of advice from this comprehensive guide to affordable car insurance in Ireland, it is that the more information you have, the better equipped you’ll be to find the right solution for you. At Mike Murphy Insurance, no matter your lifestyle or needs, we’ll go the extra mile, to find you the most affordable cover options on the market.

Tips to Find Cheaper Car Insurance in Ireland: A Compact Summary

  1. Choose the right cover 
  2. Use a broker 
  3. Pay one lump sum 
  4. No Claims Bonus 
  5. Reduce your use 
  6. Voluntary Excess 
  7. Stay safe 
  8. Pick the right car

If you’re a young driver, also consider:

  • Become a named driver
  • Telematics/Black box insurance
  • Get your full license
  • Add an extra driver to your policy
  • Partake in an advanced course

 

Useful Links

https://www.rsa.ie/ - Road Safety Authority

https://www.ncts.ie/ - National Car Testing Service

https://www.ndls.ie/ - National Driving License Service

https://www.citizensinformation.ie - Citizens Information