Car insurance

There are three main types of car insurance:

•  third-party
• third-party, fire and theft
• comprehensive

Third-party

This is the minimum legal requirement needed to drive a car in Ireland. It only pays out for claims that other people make against you for damage or injury you cause to them. Third party cover is not widely available from insurance companies in Ireland.

Third-party, fire and theft

With this cover, you can also claim for loss or damage to your own car as a result of fire or theft (attempted theft is also covered), but not accidental damage to your own vehicle. This type of cover costs more than basic third-party cover.

Comprehensive

This gives you third-party, fire and theft cover, and also allows you to claim for damage to your own car, no matter who is to blame. You can expect to pay more for comprehensive cover than for third-party, fire and theft cover. The benefits of comprehensive policies vary between insurance companies, so you should check the policy for full details. Some of the benefits that may come with comprehensive cover include:

• Windscreen and glass cover. Some insurers are now imposing excesses here.
• Cover for damaged or stolen personal belongings. This usually applies to items stolen from a locked boot or glove compartment. This is not standard cover and you will need to check the policy schedule or policy document for details.
• Recovery service and emergency breakdown assistance. This may not always be a standard cover, and the age of the vehicle could have a bearing on this being offered.
• Replacement or hire car. The cost of this may be covered if your own car is off the road as a result of an accident, and usually for a short time only.
• Driving other people’s cars. This covers you for any damage you do to another car or person while driving someone else’s car. It does not cover any damage to the car you borrowed or personal injury to you if you cause an accident. Note: This excludes cars owned by the insured person or their partner. There are restrictions with certain insurers based on the engine size of the other vehicle; it must be taxed and have a valid NCT; and some insurers require that it has valid insurance in place on it. Some insurers will also give comprehensive cover on the borrowed vehicle, but with some restrictions.
• No claims bonus protection or step back protection.
• Named driver on car. You may want to insure someone else to drive your car, such as your son or daughter. As a named driver they will be covered under the policy.
• Open driving. This allows anyone with a full driving license to drive your car with your permission.
• Driver personal accident cover. This means the driver can receive compensation for death or serious injury suffered as a result of an accident they are responsible for.
• A common misconception is that comprehensive cover will cover your medical expenses and injuries if you are injured in an accident. This is not always standard and there may be very limited cover in place. You will need to check this with your insurance provider.

Examples of when you might choose different car insurance policies

• What type and level of cover best suits your needs? Think about the type of cover you need for your current circumstances. You may want additional benefits such as breakdown assistance, courtesy car, and so on. If your car is old or low in value, think about whether comprehensive cover is worth the extra cost.
• Ask about any restrictions on the policy, for example, if only named drivers are covered.
• Ask what each policy covers, the exclusions and the amount of the excess.
• Think about whether you should protect your no claims bonus.

Insurance companies use a number of factors when calculating insurance premiums:

• driving experience (including whether you have a provisional or full license)
• claims history
• where you live
• type of car
• age of car
• your age
• occupation
• what you use your car for
• type of cover required

The table below explains the level of protection given by each type of insurance:

Your no claims bonus (also called your no claims discount) is a reduction in your insurance premium based on the number of years since you made a claim, or a claim was made against you. Only the policyholder can earn a no claims bonus.

Usually, the maximum number of years that you can receive a no claims bonus for is five years. Your no claims bonus does not increase any further after six years as this is the maximum discount. Therefore, whether you have eight or 15 years of no claims, the discount that you receive will be the same. Note: some insurance companies may give you a discount for more than 5 years no claims. However, it must be stated on your no claims bonus that you are entitled to it and most insurers will state five years only.

Your bonus may be reduced or lost if you make a claim or a claim is made against you, even if you were not at fault. If the accident was not your fault and the insurance company can recover their cost, your bonus may be restored.

Some insurance companies will allow you to pay to protect all or part of your no claims bonus. The following are some of the options you can choose:

• full no claims bonus protection
• step back bonus protection
• no claims discount protection for fire and theft claims

If you find yourself in a position where you need to make a claim on your insurance, you can find a step by step guide here to help you.

Full no claims bonus protection

With full no claims bonus protection, if a claim is made against your policy, you will not lose any of the years of no claims bonus which you have built up. Always read the small print of your policy documents for any exclusions or limitations to your no claims bonus protection. Many insurance companies may only protect your no claims bonus for a fire and theft claim, or for a certain number of claims within a particular time period. No claims bonus protection does not make you immune to a claim, you still must disclose the claim and it may carry a loading. No claims bonus protection ensures you keep your discount if you have a claim. This means that your premium will not be impacted as much as it would be if there were a claim made.

Step back bonus protection

Step back bonus protection means you will not lose all of your no claims bonus if you have to make a claim, or if a claim is made against you. The amount that you lose depends on the terms and conditions of your policy.

No claims bonus protection for fire and theft claims

This means you would still keep your no claims discount if you have a claim for fire or theft only.

Insurance companies must:

• tell you how long their quote is valid for, and make sure you are aware of any special conditions or restrictions that apply to the cover they are offering you
• tell you about any discounts that apply or any extra premium being charged when they give you a quote
• tell you that your cover or any claim you make could be affected if you give incorrect or incomplete information when applying for cover
• tell you that you have a cooling off period of 14 days after you agree to buy the insurance policy
• issue your policy document within five business days of providing you with cover

An insurance company can refuse to sell you car insurance as long as they are not in breach of equality law. However, the refusal must be in writing and given to you within five business days of refusing you.

If you have been refused cover by three or more insurance companies, you can contact the Declined Cases Committee of Insurance Ireland. Insurance Ireland is the representative body for insurance companies in Ireland. They will get an insurance quote for you (usually from the first company you approached) unless there are public policy reasons why you should not be given car insurance. It is important that you keep note of the order in which you received your quotes.

You can also contact the Declined Cases Committee if you feel a quote is too high or the conditions attached are so severe that it amounts to a refusal to insure you.

In general, if you buy a car insurance policy from an EU-based insurance company you will have third party insurance to drive your car in any EU country. You can usually take your car for up to 31 days to another EU member state for no extra charge – this will be set out in your policy. However, you may want to arrange additional cover for your trip. You should also check with your insurance company if you want to travel outside the EU.

From 31st March 2025 motorists will be required to provide their Driver Number (printed on their driving licence), and those of any named drivers, to their vehicle insurer when taking out / renewing motor insurance policies.

The Department of Transport, which is responsible for this legislation, requires all insurers and intermediaries to ensure the Driver Number data is collected and validated against the Department of Transport’s National Vehicle and Driver File. This must be done prior to issuing a policy of motor insurance.