Are you paying too much for car insurance? The average premium is up a whopping 18 per cent since 2022, according to Central Bank figures.
There are few household bills where we would tolerate this jump. You can suck it up, or you can take action to lower your quote. And actuaries have the inside track.
The average car insurance premium last year was €655, an increase of €144 in just three years. But you don’t have to accept another expensive renewal.
Actuaries know exactly what insurers look for when calculating a premium. Understanding their secrets could help you get a cheaper quote. Here are 10 tips to save on your next policy.
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1. Check your mileage
Which drivers present the highest risk? Those who spend the most time on the road. One of the best predictors of a car crash is how much time you spend driving, says actuary Noel Garvey, who is chairman of the Society of Actuaries’ general insurance committee.
That’s why insurers ask your estimated annual mileage when quoting for your policy.
“The more you drive, the higher the chance of an accident,” says Garvey. More mileage means more risk, so insurers will charge you more.
Close to one million people reported working from home at least sometimes in the second quarter of 2026, according to Central Statistics Office (CSO) figures. If you are one of them, tell your insurer.
The average private car in Ireland covered 15,196km in 2023, according to the CSO. Many people drive less.
To check your mileage, divide the odometer reading by the car’s age in years, says Motorcheck.ie. Or check the readings between NCT certificates, work out the difference in mileage and compare it to the national average.
Overestimating your mileage when seeking a quote means paying more than you need to. But you need to play fair. Underestimating to save money could cause problems if you need to claim.
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2. Excess
You don’t have to be an actuary to get a better price on car insurance but it pays to know more about how your quote is designed, says Garvey.
Ask your insurer how the price changes if you increase the excess, he says. This is the amount you agree to pay towards a claim. It’s often set at a default of €250 to €300.
If there’s a crash and you submit a claim for €4,000 and your policy excess is €200, for example, you’ll pay the first €200 and the insurance company will pay €3,800.
Agreeing to a higher excess could mean a cheaper quote.
“If you back yourself to be more careful than most, it might be well worth taking on that risk,” says Garvey.
Just ensure the excess you set is affordable in case of a mishap.
3. Drive the right car
Buying a new or second-hand car? Get an insurance quote before signing on the dotted line, says Garvey. Some cars will be more expensive to insure than others, tying you into higher premiums throughout your ownership.
Cars with smaller engines, lower repair costs and strong safety ratings can be cheaper to insure, says an Aviva spokesperson.
Of the most popular car models on Irish roads, the cheapest to insure, on average, are the Hyundai Tucson (€569), the Nissan Qashqai (€584) and the Skoda Octavia (€585), according to data from the chill.ie car insurance pricing index, published in July. The most expensive at €783 were the BMW Series.
Owners of big horsepower, seven-seater SUVs will pay a whole lot more.
Buyers of all-electric vehicles, now the best-sellers on the Irish market, will likely make significant savings on fuel, but you will need to factor higher insurance into your running costs.
“Electric vehicles can be more expensive to insure than a petrol or diesel car as they are, in general, more expensive to repair,” says Garvey.
On the flip side, electric cars are responsible for 5 to 10 per cent fewer crashes on average than comparable vehicles with internal combustion engines, according to a study by the German Insurance Association.
Damage caused by electric vehicles are up to 20 per cent less frequent than conventional vehicles, the study said. This could be due to drivers planning ahead or driving more slowly to preserve battery.
But the damage caused by electric cars, which are heavier, and the damage caused to them, tends to be more expensive to repair, the study said.
4. Get a black box
A telematics driving policy, also called “black box” insurance, can knock thousands off the insurance policy premium for first-time drivers or those new to Ireland.
The policy uses a device fitted to your car or a phone app to monitor things like your mileage, speed, acceleration and braking patterns, how you take corners, the amount of time you are driving by day and night and on urban and rural roads, says Garvey.
Price comparison website bonkers.ie sought quotes from a range of providers, including AIG, Aviva and Zurich, under a number of conditions and found that a 20-year-old driver with a full licence could get a quote of just €570 for fully comprehensive telematics cover.
When there was no telematics cover, the price of the standard policy jumped to almost €3,900.
Depending on how safely they drive, they may benefit from more personalised pricing on renewal, says Aviva Ireland.
Before signing up, check for restrictions such as curbs on distance or night-time driving, Garvey advises.
“Lower mileage or safer driving does not guarantee a lower premium from every insurer and it’s important to compare a telematics quote against a standard quote of comparable cover before purchase,” he says.
5. Optional cover
Your car policy can come with a boot-load of extras. Breakdown assist, cover for lost or stolen keys, loss of personal belongings, windscreen cover, courtesy car replacement, cover for legal fees to recover uninsured losses – the list is long.
Some of these “extras” are bundled into the price; some will cost you more.
“Check what’s included as standard, what is the optional extra and whether you actually need it,” says Garvey.
Lost key cover pays to replace lost or stolen keys and can add about €20 to your quote. If your home insurance policy already covers this, or if you are comfortable paying for a rare key replacement, skip it and save yourself some dosh.
Likewise, if you already have breakdown assist through a manufacturer’s warranty, don’t pay on the double.
If you have built up several years of no claims, paying extra for no-claims discount protection can be worth considering. A single claim without protection could reset your discount to zero, significantly increasing your premium at renewal.
Stepback no-claims discount protection can be a more affordable alternative to full protection. Your discount reduces after a claim rather than disappearing entirely. Some insurers may offer this as standard.
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6. Drop to one car
If your household has two cars and one spends most of its time sitting in the drive, dropping to one car will save you thousands.
Typically, in a two-car household both members have “main driver” status on their respective policies, with individual no-claims bonus records. You probably have “named driver” cover on each other’s policies too.
You might think you need to keep two cars with main driver insurance policies going to maintain your no-claims bonus; you may not, depending on your insurer. You can be a named driver only and keep your no-claims bonus, provided you swap main driver status with your partner or spouse every two years.
“Our no-claims discount remains valid for up to two years after a customer’s previous policy expires, subject to terms and conditions,” says an Aviva spokesperson.
When you finish your two-year stint as the main driver, be sure to ask your insurance provider for written proof of your no-claims record. Keep this on file.
Garvey advises customers to check directly with their insurer how long an unused no-claims bonus remains valid and whether time spent solely as a named driver affects its recognition.
If your household has two cars, be aware that a no-claims discount is earned separately on each vehicle, says Aviva.
“Each vehicle must have the appropriate insurance cover in place, so simply alternating who is the main policyholder every two years would not in itself provide cover for two cars.”
But if the household has one car, named driver experience is treated separately and may be recognised where someone has built up a claim-free driving record as a named driver.
Aviva policyholders may have third-party cover to drive other people’s cars, but this extension on a policy applies to the policyholder only, says Aviva. The named driver shouldn’t assume they have this extended cover.
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7. Be like Louth
Penalty points are the surest way to drive up your insurance cost. Drive better and you’ll pay less.
The people of Louth got the memo. Just 10.9 per cent of its licensed motorists hold active penalty points – the lowest in the State, according to analysis of Road Safety Authority and Central Statistics Office data by Quote Devil this year.
Wexford is Ireland’s penalty points capital. More than one in five drivers there have active points on their licence, twice the rate of Louth.
Speeding and holding a mobile phone while driving are the most common offences, each carrying an immediate three penalty points, according to the data.
“Once you reach three or more penalty points, many insurers increase premiums or apply steep surcharges,” says Quote Devil.
Border counties lead the State in penalty points for uninsured driving, while Cork drivers have the most for failing to wear a seat belt. Leitrim, Kerry and Roscommon drivers are the most likely to have points for worn tyres.
“Having active penalty points or a motoring conviction can make finding affordable car insurance challenging. Many standard insurers penalise point-holders heavily,” says Quote Devil.
Insurance claims are another issue. They comprise injury to people and damage to vehicles, says Garvey. While injury costs in Ireland have gone down, more than half the money paid out on settled claims now goes towards damage repair costs.
A study by Swiss Re found that Waymo’s autonomous vehicles had an 88 per cent reduction in property damage claims and a 92 per cent reduction in bodily injury claims compared to human driver baselines. When it comes to insurance costs, the driver is a significant variable.
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8. Pay annually
Paying for your car insurance in instalments can ease the blow to your monthly budget, but this can mean extra charges.
“The total paid over the year may be higher than the headline annual premium,” says Garvey. “Look at the overall cost, not just the monthly instalment when comparing quotes.”
Pay the yearly amount upfront if you can, even if that means dipping into your savings, or start to put a little bit of money away each month now so that you can pay in full next year, says Mabs.
9. Don’t modify
Thinking of buying a modified car or modifying your own? Engine modifications, changes to the wheels, suspension or bodywork can all drive up your quote.
“Modifications can affect an insurer’s assessment of the vehicle’s risk, value or likely repair cost, so you should disclose them and check the potential insurance impact before making changes,” says Garvey.
Boy racers take note.
10. Shop around
Automatically renew your policy with your existing insurer and you will pay more. Too many of us do this: maybe that’s why net profit among Irish motor insurers hit €89 million last year.
Put half an hour into shopping around and you could save around €100.
When you get your renewal policy documents and quote this year, ask for a discount, says Garvey.
You could use a comparison website like bonkers.ie, switcher.ie, chill.ie to compare quotes. You’ll need your penalty points status – you can request a statement on ndls.ie, using your PPS number.
You’ll need details of any claims in the past five years too. You’ll find those in your current policy documents.
If you are shopping around by phone, ask if it’s cheaper for you to complete the transaction online. Many insurers provide an online discount.
And if there is more than one car in your household, ask your insurer for a multipolicy discount.
