Top Tips for Reducing Your Car Insurance Premiums

Car Insurance is essential for every driver in Ireland. However, that doesn’t mean you have to pay through the nose for it. With a little effort and some smart strategies, you can enjoy great cover without draining your wallet. In fact, recent research by the Central Bank of Ireland shows that the average motor insurance premium dropped by 17% between 2017 and 2022. Despite this, many drivers still overpay simply because they are unaware of the steps they can take.

In this guide, we’ll explore the top tips for reducing your car insurance premiums. Whether you're a seasoned driver or just starting out, following these methods can save you hundreds of euros each year.

Let's dive in!

Shop Around for the Best Rates

One of the biggest mistakes Irish drivers make is sticking with their existing insurer year after year. It feels easier to renew, but loyalty often costs more. According to a 2023 survey by the Competition and Consumer Protection Commission (CCPC), 61% of Irish consumers who switched car insurance providers saved money.

It’s vital to shop around every time your renewal is due. Don’t just accept the first quote you receive.

Many insurance companies offer competitive deals to attract new customers. These deals are often much better than renewal quotes offered to existing customers. Use online comparison websites to get a wide range of quotes in minutes. Alternatively, consider working with a broker like Dolmen Insurance. Brokers can access a panel of insurers and may even secure exclusive discounts that you won’t find elsewhere.

When comparing quotes, be sure to check:

• The type of cover offered (Third Party, Fire and Theft vs. Comprehensive)

• Any excess you would have to pay if you claim

• Extras like breakdown assistance or windscreen cover

Sometimes, the cheapest option isn't the best. Always balance cost with quality of cover.

Additionally, remember to start shopping early. Insurers often charge higher rates if you renew at the last minute. A 2022 study by Coverinaclick.ie found that customers who renewed their policy two to three weeks before expiry paid up to 30% less than those who left it until the last week.

Increase Your Deductible

Your deductible, also known as an excess in Ireland, is the amount you pay towards a claim before your insurer covers the rest. A higher deductible usually means a lower premium.

For instance, agreeing to a voluntary excess of €500 instead of €250 could reduce your premium by 10–15%.

Of course, this approach comes with a risk. If you need to make a claim, you’ll pay more out of pocket. Therefore, it’s important to ensure you can comfortably afford the higher excess should something happen.

Why does a higher excess lower premiums? Simply put, insurers see you as less likely to make small claims. This reduces their risk, and they reward you with lower prices.

Before adjusting your excess, check:

• What the compulsory excess is (some policies have set minimums)

• Whether certain claims (like theft or fire) have different excess amounts

• How the excess compares to your car’s value

It’s also wise to set aside the excess amount in a savings account. That way, if you ever need to claim, the money is readily available.

Take Advantage of Discounts

Many drivers in Ireland miss out on available discounts simply because they don’t ask. Insurance companies offer a range of discounts, and combining a few can lead to significant savings.

Here are some of the most common discounts available:

• No Claims Discount (NCD): Building up a NCD over time can cut your premium dramatically. After five years claim-free, discounts of up to 50% are not unusual.

• Multi-Policy Discount: If you insure your car and home through the same provider, you might enjoy a multi-policy discount.

• Named Driver Experience: Some insurers reward drivers who have built up years of named driver experience on another policy.

• Telematics (Black Box) Discounts: Younger or less experienced drivers can save by agreeing to have a black box fitted to monitor safe driving habits.

• Loyalty or Renewal Discounts: Occasionally, existing customers are rewarded with small loyalty bonuses.

• Occupation-Based Discounts: Some professions are seen as lower risk and attract lower premiums. For example, teachers, nurses, and civil servants often qualify.

According to the Insurance Ireland Consumer Survey 2023, only 45% of customers asked about all the discounts they were entitled to. This means over half may be leaving money on the table!

When speaking with your insurer or broker, always ask:
"Are there any discounts I could qualify for that aren’t automatically applied?"

Moreover, think about simple changes that could qualify you for new discounts. For instance, installing an approved alarm system or parking your car off-street at night can both lower your premium.

Maintain a Good Driving Record

Your driving history is one of the most important factors insurers consider. A clean record with no claims or penalty points will always result in cheaper insurance premiums.

The Road Safety Authority (RSA) reports that as of 2023, 23% of Irish drivers have at least one penalty point on their licence. Unfortunately, just one or two points can cause a premium increase of up to 30% with some insurers.

Therefore, driving carefully isn’t just about safety — it directly affects your wallet. Here’s how you can maintain a good record:

• Stick to speed limits: Speeding fines automatically result in penalty points.

• Avoid mobile phone use: Even touching a phone while driving can result in serious fines and points.

• Drive defensively: Always anticipate the actions of other drivers to avoid accidents.

• Avoid late-night driving: Statistics from the RSA 2022 Annual Report show that accidents are more common between 11 pm and 4 am.

Additionally, think twice before making small claims. While it’s tempting to claim for minor damages, even one claim can wipe out years of no-claims discount savings.

Sometimes, it's smarter to pay for small repairs yourself rather than involve your insurer. Over the long term, you could save far more through lower premiums.

Bonus Tips for Even Greater Savings

Although the four strategies above are the main pillars, there are even more ways to reduce your car insurance premium:

Choose the Right Car

Not all cars are treated equally by insurers. High-performance models, luxury vehicles, and cars with powerful engines typically cost more to insure. When shopping for a vehicle, opt for a model that sits in a lower insurance group.

Cars with better safety ratings, lower repair costs, and smaller engines tend to attract lower premiums.

Limit Your Mileage

The more you drive, the greater the risk of an accident. Many insurers now offer lower premiums to drivers who clock up fewer kilometres.

According to AA Ireland, drivers who cover less than 10,000km per year often pay up to 15% less than heavy commuters. If you mainly use your car for local errands or weekend trips, be sure to mention this when requesting quotes.

Secure Your Car

Vehicles that are less likely to be stolen are cheaper to insure. Installing immobilisers, alarms, and trackers not only protects your car but may also slash your insurance costs.

Additionally, parking your car in a garage or secure driveway rather than on the street can make a noticeable difference.

Pay Annually

While paying monthly can feel more manageable, insurers often charge interest on instalments. Whenever possible, pay your premium in full to avoid extra charges.

In fact, the Irish Financial Review 2023 found that customers paying monthly pay an average of 8% more than those who pay upfront.

Ready to take the next step

Lowering your car insurance premiums in Ireland doesn’t have to be complicated. By shopping around for the best rates, increasing your deductible, taking full advantage of available discounts, and maintaining a spotless driving record, you can keep your costs down without sacrificing essential cover.

Moreover, choosing the right car, limiting your mileage, securing your vehicle, and paying your premium annually can deliver even greater savings.

As always, working with a trusted broker like Dolmen Insurance can make the process even easier. We do the hard work of finding the best policies so that you don’t have to.

Start applying these tips today, and you could soon see significant savings on your next car insurance policy. Every euro counts, and with just a little effort, those savings can add up fast.

Choosing the best Car insurance we policy in Ireland requires careful consideration of coverage levels, premiums, and additional benefits. Whether you drive a traditional petrol or diesel vehicle or have switched to an electric car, finding the right insurer is crucial. Dolmen Insurance Brokers stand out as the leading provider of EV-specific insurance in Ireland, with a dedicated team to assist electric vehicle owners.

If you are looking for affordable, comprehensive cover, consider Dolmen Insurance. Get in touch today to discuss your car insurance options and explore the benefits of bundling your insurance cover. From Mortgage Protection to Life Insurance, home insurance or car insurance we have you covered.

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