The type of insurance cover you want

Every motor vehicle must be insured by law. There are generally two types of motor insurance cover:

1. Comprehensive cover Comprehensive insurance will cover the cost of damage to your car and to the other car if involved in an accident.

2. Third party fire and theft cover If you have an accident and it’s your fault, this policy covers repairs to the other party’s vehicle but not yours. If your car is stolen or goes on fire, this policy covers your costs of repair or replacement.

The vehicle being insured

• Replacement cost Insuring a vehicle for €30,000 will cost more than one for €15,000 all other factors being the same. Cars depreciate over time. Each year, update the car value to reflect the current value, and not the original purchase price.

• Engine size/power More powerful engines will generally cost more to insure than smaller ones.

• Vehicle age Insurance costs rise with vehicle age. Newer cars have more safety features than older ones.

• Fuel type Diesel engines for example cost more than other fuel types.

Note: The above is intended as a general indication only. Talk to your insurer or broker about how each of these factors impacts on your motor insurance premium. 

Your driving record

Clean driving records, no insurance claims or accidents in a given period, fewer or no penalty points, no endorsements on your driver’s licence – these all have a bearing on your insurance price.

TIP: Consider also adding a second driver on your insurance as this can reduce your premium.

Use of car

Cars used for commercial purposes, which generally also have higher annual mileage, are more expensive to insure than cars used for social and domestic purposes only. Using your car for commercial purposes would mean that driving is a permanent aspect of your job and you are selling goods or services while on the road. Wordings vary between insurers so it is essential to check the precise wording and relate this to the actual use you require. Annual mileage affects all premiums whether domestic or commercial.

Related to this, occupation can affect premiums. Some occupations attract higher premiums because data shows they have a higher risk attached. Discuss this with your insurance provider or broker when you call to review your quote.

 TIP: Movement is still somewhat restricted during COVID-19, with many more working from home and driving less. When calculating your likely mileage for the coming year, take this into account. It will help to reduce the cost of your premiums if your annual mileage falls.

Your address

Urban addresses might face higher insurance costs simply because they may be at greater risk of crime for example. Again, make sure your details reflect your current address when reviewing costs.

Alarm/car protection

Whether you have an alarm, the type it is and where your car is parked when not in use overnight, all influence your premium. Secure underground parking, garages and driveways are more secure than on-street parking. If your car is well secured, by alarm or secure parking, make sure your insurance premium reflects the best conditions you can offer.

Other tips that can reduce your quote

• If you are a non-drinker, let your insurer or broker know, as this too can lower your premium.

• If you have undertaken additional driver training such as an Advanced Driving course or a Defensive Driving course, some companies will recognise this so it can also positively impact on

PLEASE NOTE
Insurance is a very detailed subject and the outlines above are not intended to be exhaustive. Instead we recommend that you ask your insurer or broker to explain each one in detail.