Motorists in Ireland could reduce their annual premiums by an average of €300 simply by shopping around for motor insurance, according to new research from the Central Bank.
The regulator’s analysis of 16 different consumer profiles revealed that insurers frequently provide widely varying quotes for identical driver profiles.
“all tend to differentiate between lower and higher risk customers in a consistent way” the Central Bank said, while premiums differ. June data from eight major insurers that underwrite more than 90% of the Irish market show that many drivers could save money by comparing quotes.
Why renewal habits cost drivers money
Despite the potential for savings, the Central Bank found that only 9% of motorists switch their insurance provider. “could lose out on a better price or more suitable cover – especially higher-risk consumers, where the savings can be much larger” the Central Bank found, with one in five drivers renewing their policy without engaging with their insurer at all, often missing out on better pricing or more suitable coverage options.
The research indicates that higher-risk consumers, such as those with penalty points, limited driving experience, or those using vehicles for business, are particularly prone to losing out. These drivers often face challenges accessing online quotes, which can lead to them defaulting to their existing provider’s renewal offer.
How to secure better insurance quotes
The Central Bank advises that consumers who struggle to find online quotes should explore broker channels or contact insurers directly. Seána Cunningham, Director of Insurance with the Central Bank, emphasized that price should not be the only factor in the decision-making process.
“Consumers should also compare the level and type of cover provided to make sure they are getting the right cover for them,” Cunningham said.
Current data shows that 53% of consumers call their insurer to arrange cover, while 20% use a broker. Only 18% of drivers purchase their policies through an insurer’s website, and just 4% utilize price-comparison tools.
Industry perspective on market competition
Insurance Ireland welcomed the findings, noting that the average motor insurance premium in the country currently sits at approximately €655. “there are some very positive messages for consumers in this report” Moyagh Murdock, Chief Executive of Insurance Ireland, said, stating that the report highlights positive trends for the market.
“Motor insurance prices are down more than 5% on last year, there is real choice in the market and, importantly, almost eight in 10 customers say they are satisfied with their current insurer,” Murdock said.
She encouraged motorists to compare options at renewal, though she clarified that shopping around does not always necessitate switching providers. According to Murdock, consumers should aim for the right combination of price, cover, and service by speaking to their existing provider, seeking phone quotes, or consulting a broker.
Practical steps for lower premiums
For drivers looking to improve their risk profile over the long term, Insurance Ireland suggests focusing on specific habits. Murdock highlighted that learner drivers can take practical steps by progressing to a full licence.
Maintaining a clean driving record, building experience over time, and avoiding penalty points are among the most effective ways to influence future premiums. The Central Bank’s National Claims Information Database 2025 report confirms that these factors remain central to how insurers calculate risk and pricing across the sector.
Common questions about motor insurance
Why can’t I get an online quote for my car insurance?
Some insurers restrict online quoting for higher-risk profiles, such as those with penalty points, limited driving experience, or commercial vehicle use. The Central Bank recommends that these drivers contact brokers or insurers directly via telephone to obtain a policy.
Does shopping around always mean I have to switch companies?
Not necessarily. Insurance Ireland notes that the objective is to find the best combination of cover and price. You can contact your current insurer to discuss your renewal or use a broker to see if your existing provider is offering a competitive rate compared to the rest of the market.
What is the most effective way to lower insurance costs?
Beyond comparing quotes, the industry suggests long-term risk management. For learners, obtaining a full licence is a primary way to improve your risk profile, alongside maintaining a claims-free history and avoiding penalty points.
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