Car insurance in Ireland is mandatory for all drivers. Unlike other countries like New Zealand where car insurance is advisable but not obligatory, in Ireland every driver must at least have third party insurance to drive on Ireland’s roads. If you are looking for car insurance in Ireland that doesn’t put too much of a dent in your bank balance, you have come to the right place.
As you may be aware, car insurance in Ireland is expensive. In fact, Ireland is regarded as one of the more expensive countries in the European Union (EU) when it comes to insuring a car, especially for younger drivers. This is because of the Section 5 (2) of the Equal Status Act (2000,) which allows insurance companies to charge higher or lower premiums depending on your perceived potential risk as a driver. The fact that younger drivers have a statistically higher chance of being involved in accidents means that their premiums are typically higher.
That being said, the insurance market in Ireland is not a monopoly and choice does exist, even for younger drivers, so make sure to shop around before making a final decision. Like any aspect of your move to Ireland, the more time you spend researching your car insurance options in advance, the easier it will be to find the perfect insurance premium once you arrive.
Types of Car Insurance Policies in Ireland
Third party insurance is the minimum mandatory insurance needed to drive on Irish roads. However, it is not the only option. Two other insurance policies that many Irish drivers opt for are comprehensive and third party, fire and theft. A brief breakdown of each of these policies can be found below:
As mentioned above, third party insurance is the minimum mandatory insurance needed to drive on Irish roads. However, this insurance policy does have limitations. First of all, if you are deemed to be at fault in an accident, then only your passengers, the other driver and the passengers in the other car will be compensated. In addition, no cover will be paid out for damage sustained in an accident to your own car, and no compensation will be made available if your car is stolen or catches fire.
Third Party, Fire and Theft
As the name suggests, a third party, fire and theft insurance provides all the coverage offered by third party but with the added advantage of compensation being paid out should your vehicle be stolen or involved in a fire. In addition, third party, fire and theft covers against any loss of value to your vehicle because of an attempted theft or fire and damage to property is also covered. In addition, extras like windscreen breakage can be easily added to increase your coverage while still remaining cheaper than the fully-comprehensive option. Given these many benefits, it is easy to see why third party, fire and theft is the most popular car insurance policy in Ireland.
A comprehensive insurance policy is the most expensive option available on the Irish market, but will cover drivers who opt for it against almost any eventuality on the roads. This includes coverage for any damage done to the vehicle regardless of how it was incurred, as well as life and accident insurance and any personal belonging lost or stolen from your vehicle. In addition, the cost of a hired car is covered should the insured vehicle be off the road, and extras like windscreen breakage come as standard. Ireland’s economic recovery has seen an increasing number of new cars on the road, and with that has come a higher demand for comprehensive insurance policies as new cars are generally advised to have comprehensive insurance.