Cheap Car Insurance Ireland

Car insurance in Ireland has started to become more expensive over the last few months. Despite actually falling in cost for the past number of years, it seems many insurance companies are keen to return to the 'glory days' when the Irish motor insurance market was an incredible 100 times more profitable than our neighbours in the UK! In many cases, this is the result of bad investment decisions by them, and they're seeking to re-coup that lost money from the insurance-paying public.

There isn't much you can personally do about that but, at the end of the day, the cost of your insurance policy will always be directly related to just one thing: Risk!

The whole business of insurance is about risk. When you buy any kind of insurance policy, you are accepting a small GUARANTEED loss (called the premium, which is the amount to pay your insurance company) to prevent a large POSSIBLE loss (whatever you are being insured for). The cost of the premium is directly related by how likely it is that large possible loss will happen. If it is more likely, the risk (of having to pay for that loss) to the insurance company would be greater and, in turn they'll charge you a higher premium. If it is less likely, the risk to the insurer would be lower, and, in turn, they'll charge you a lower premium.

Therefore, anything you do to lower the risk that your insurance company will have to pay out on your insurance policy will lower your premium (the amount they charge you).

Here are the seven easiest, and most effective, things you can do to lower your risk (and, therefore, lower) your premium. These work no matter where you live, what age you are, what kind of car you have, what your driving record is like, or how many penalty points you have!

Tip #1: Pay More Excess:

The term "excess" refers to the amount you have to pay yourself towards any insurance claim you make. For example, if your excess is €200, and you make a claim to the tune of €1000, then your insurance company will only pay out €800. Some policies have no excess, while some have an excess of €500, or more. Obviously, the higher the excess, the cheaper and less-risky things are for your insurer. For that reason, if you opt for a higher excess, they will charge you a (sometimes much) lower premium. (Of course, you should only do this if you can actually afford to pay the value of the excess in the event of a claim.)

Tip #2: Reduce Your Cover:

By law, you must have at least third-party insurance (to cover the cost of damage you cause to other people or property in an accident), although most people with (sensibly) add fire and theft protection to this kind of policy.

If you have comprehensive insurance (where the cost of damage to your own car is also covered), be aware that, even though this costs (much) more than third-party cover, if you have an accident, the insurer will only pay out for what THEY think the car is worth at the time. For this reason, if your car is very old and/or has a very-low value, comprehensive insurance might not be worth the extra cost. All that extra money it cost you will have been for nothing.

Tip #3: Get A “Full” Driving Licence:

This might seem obvious, but you'd be surprised by how many people don't 'get it'. Passing your driving test proves (to the insurance company) that your driving ability is at least equal-to, or exceeds, the minimum standard required by law. In their eyes, that makes you a less-risky driver, and, therefore, they will charge you less to insure you.

So, if you have a provisional licence (or learner's permit, as they're called now), apply for your driving test as soon as you can. It doesn't take as long as it used to (most testing centres take applicants in less than 6 weeks). Certainly, driving lessons can be expensive but consider the fact that the savings are (very) big, instant, and permanent. Also, if/when you pass your driving test, apply for your "full" driving licence (at your local Motor Tax Office) right away, as your test certificate is only valid for 2 years (if you let it expire, you'll have to do your test again), and you're not actually a "fully" licensed driver until you do so anyway.

Also, inform your insurance company right away (they'll want a copy of your licence). Do NOT wait until your next policy renewal comes around. Since what you paid for your current insurance policy takes account of the fact that you didn't have a "full" driving licence at the time you took it out, you insurer may even give you a rebate amounting to the difference between what you actually paid, and what you would have paid if you did have a "full" licence at the time (which can be quite a bit). If they do, they'll only pay it for the time remaining on your current policy so, if you don't tell them you have your "full" licence until the next renewal date, you'll likely get nothing back at all.

For the same reason (and the fact that dealing with the Gardai, Banks, and just about any other body that requires identification, will be so much easier), if you have a foreign driving licence, apply to exchange it for an Irish licence. Many insurance companies will offer a lower price when you have an Irish licence, even if for no other reason than they can actually read exactly what it says. That said, you can't exchange a licence from every country; only current members of the EU and EEA (which includes the British overseas territories and Crown dependencies of Gibraltar, Jersey, and the Isle of Man), as well as Switzerland, Australia (any state), Japan, South Korea, and South Africa. Also, it has to be a "full" driving licence - you can't exchange the equivalent of an Irish learner's permit from any of these countries.

Tip #4: Don’t Park On The Street:

Some geographical areas will have a history of higher insurance claims and, as such, attract higher insurance premiums. That history of higher claims could be caused by a number of things, but is most often related to a higher crime-rate (increasing the chance your car could be stolen). For example, if you live in Dublin, which has the highest crime rate in the country, you can expect to pay significantly more for your car insurance than if you lived in other parts of Ireland.

However, if you park your car in a garage, or some other secure off-street location (instead of on the street), the chance of theft is diminished, which lowers the risk for your insurance company, which, in turn, will reduce the amount they charge you for your policy.

Tip #5: Beware of "Named" Drivers:

The cost of naming another driver on your insurance policy will depend on their age, sex, driving history, and a number of other factors. If it's a low-risk driver, such as an older woman, it's unlikely your premium will increase by much. In fact, it might not increase at all! However, if it's a male driver, particularly a younger male (the most risky drivers of all), you should expect to pay significantly more.

And, most importantly, remember that, if a named driver causes an accident in your car, YOUR insurance record may be affected, even though you may not have even been in the car at the time!

Tip #6: Protect Your No-Claims Discount:

Building up a no-claims discount is incredibly valuable. If you haven't made a claim, or had a claim made against you, your no-claims discount could grow to as much as 71%!

Protect it! For what is (usually) a very reasonable amount, most insurance companies will apply 'no-claims protection' to your policy, whereby you'll be able to make a certain number of claims within a certain time period and still keep your discount! (Also, if you change insurer, make sure they will carry-over your no-claims discount from your previous company.)

Tip #7: Always Get Multiple Quotes:

You can save a small fortune by getting as many quotes as possible from as many Irish insurance companies and brokers as possible. Even though the product they sell is basically the same no matter which company you get it from, all insurance companies use slightly different criteria when judging how much risk you represent, which can result in vastly different premiums as a result. In some cases, the difference can be in excess of €1,000!

Also, some insurance companies may change their corporate strategy and decide that, for example, they want to move away from motor insurance and into, say, property insurance. For this reason, they may vastly increase the cost of your car insurance (to encourage you to leave them as a customer, believe it or not), even if they have previously offered you a very low-cost policy.

In other cases, some insurance companies initially offer very low rates, to increase the number of customers they have, and then rapidly increase their premiums, hoping that, once you are with them as a customer, you'll think it's too much trouble to leave and go to another company. And that works in many cases, because people think they'll have to go to spend hours ringing umpteen different companies and brokers, answering the same questions over and over again. In the past, that was true, but now, it's pretty easy to get multiple quotes (instantly) from many different companies at the same time over the Internet... and you never even have to call anybody!