Car Insurance

In Ireland, insurance is always issued to a person, not the vehicle. This means that if friends drive your car and crash into somebody, their own personal insurance is liable. If they have no insurance, everyone's out of luck.

Premiums are based the age and gender of the driver, the type of license and the standard of car. More powerful vehicles are a higher risk, and the premium goes up accordingly. Insurers also take account of the car's location and its use.

Third-party limited liability insurance is mandatory in the Republic, so there's little a frustrated consumer can do to lower their premium. Discounts may be offered, but the number of drivers involved in such schemes are usually limited. Installing a car alarm and keeping the car in a secure garage can also help to reduce the premium.

Third-party limited liability insurance covers all damages caused by you in a single accident up to a maximum of €30 million. With this kind of limit, you'd better hope you don't hit Bill Gates - or an Irish lawyer. Otherwise, you're covered.

A really big caution! Finding an insurance company willing to cover left hand drive cars from America or continental Europe is problematic. There are a few - details in the Full Site. My insurance agent notes that the very small market means you won't be getting any "competitive quotes". Translation: expect to pay through the nose. Other orifices, too.

Ireland's Driving Problem

Ireland's deadly road problems really stem from three facets of Irish culture that aren't going to change soon. First, the population is young. So, there's a big new generation of macho males on the roads.

Those roads are substandard. Even the main highways are mostly two lane, and country roads were designed for donkeys - not speeding teenagers.

Finally, the guys are using those roads to get to and from the place where most socializing in this country happens - the pub.

Insurance Costs

Auto insurance costs in Ireland went spiralling… wait for it… downward!

It was a victory for the Motor Insurance Advisory Board which Tanaiste Mary Harney set up in 1998. Against all expectations, they actually succeeded in many of their aims. Other reasons for the reduced rates are a general fall in total accidents, though not in the headline road deaths figure. A spokesman for the Automobile Association credits “Penalty points, road improvements, vehicle improvements and a growing acceptance of the seriousness of the road safety situation….”

The Great Recession put company bottom lines under pressure. Despite the reduced wage checks in most Irish drivers' pockets, the insurance firms have been increasing their rates again. But, these hikes have mostly been modest - a few percentage points. Not break the bank stuff. Competition, especially online quotes, have been keeping the rises modest.

The Sunday Business Post offers these tips for lowering motor insurance bills:

• Pass the driving test. (Insurance is much cheaper for fully licensed drivers compared to provisional licence holder.)
• Drive a small and less powerful car. (Of course, these are more dangerous in accidents. Save your money or save your life.)
• Drive safely. (Duhh. Although obvious, there are growing numbers of young men with cars who treat Ireland’s donkey cart roads as their own Grand Prix course. My neighbours call them the “boy racers.”)
• Investigate incentive schemes. (Some companies offer a driver training course. Pass it and earn discounts.)
• Pay a higher excess/deductible rate.
• Shop around. (Differences of more than 1,000 euro are quoted by different companies for the same coverage.)
• Check for a customer discount. (If you have more than one insurance policy with the same company, you may be eligible.

The Full Site

The Full Site provides links to many online insurance companies where you can get information and quotations. There is also an Irish Independent Newspaper price survey which ended up with a clear winner for inexpensive motor insurance. Advice from site subscribers will definitely save you money. There's also information about overseas insurance providers

Importantly, I share a method that will save you hundreds of euro a year with most Irish insurance providers. This method can be used by most everybody - not just sausage makers on alternate leap years as so many of these high falutin claims turn out when the small print is read. It will help if you take care of this particular piece of advice before you move!