What Irish drivers pay for car insurance, and why premiums are rising again

Official Central Bank data shows the average car insurance premium has climbed back to €655. Here is where the money goes, what injury guidelines changed, the levy that ends in January, and how to cut your own bill.

Car insurance got cheaper for five years, then turned. The average premium fell from €730 in late 2017 to €552 in late 2022. By the first half of 2025 it was back up to €655, a rise of 19% from the low.

Where the figures come from

The Central Bank of Ireland runs the National Claims Information Database, or NCID. Insurers must send it data on every policy sold and every claim paid. It is the official record of what drivers pay and where the money goes.

The latest figures, published in March 2026, cover January to June 2025. A "written premium" is the price agreed when a policy is sold or renewed.

Third-party-only cover costs more on average than comprehensive cover. In the first half of 2025, the average third-party premium was €753, against €648 for comprehensive.

Damage claims now cost more than injuries

Insurers pay out two main kinds of claim. Damage claims cover repairs to cars and property. Injury claims pay people hurt in a crash.

From 2015 to 2021, damage made up 29% of claims costs on average. In the first half of 2025, it was 56%. The average damage claim was €3,146, up 10% in six months.

“The data also shows claims costs continue to rise, primarily due to an increase in damage claims.”— Robert Kelly, Director of Economics and Statistics, Central Bank of Ireland, 31 October 2025

Injury claims have fallen. The number settled in the first half of 2025 was 22% below the 2015 to 2019 average. The total cost of injury claims was 24% below its level before COVID.

How much of your premium pays for claims

In 2024, the expected cost of claims came to 68% of the premiums insurers took in. The rest covers running costs, levies, reinsurance (insurance that insurers buy for themselves) and profit.

What the injury guidelines changed

Since 24 April 2021, judges and the Injuries Resolution Board use the Personal Injuries Guidelines to set awards. They replaced the Book of Quantum, an older list of payment amounts, and cut awards for most injuries.

In January to June 2025, 85% of claims settled used the Guidelines. Some older cases still use the Book of Quantum.

In September 2025, the Minister for Justice laid draft new Guidelines before the Oireachtas, with a 16.7% rise in award amounts to reflect inflation. They take effect only if both the Dáil and the Seanad vote to approve them.

A levy on your premium ends in January

The Insurance Compensation Fund pays claims if a non-life insurer goes bust. A 2% levy on premiums was brought in after Quinn Insurance collapsed in 2011. It fell to 1% in January 2026.

On a €655 premium, a 1% levy is about €6.55. A separate 3% Government levy on non-life insurance premiums still applies. The Department of Finance has called on insurers to pass the cut on to customers.

Your rights at renewal

• Your insurer must send your renewal notice at least 20 working days before your policy ends.
• It must show what you paid, and claims made, over the previous five years.
• Your no-claims bonus certificate should come with it.
• Since 1 July 2022, insurers cannot charge you more for renewing than a new customer with the same risk.
• If you switch, you usually get a 14-day cooling-off period to cancel.

How to cut your bill

The Competition and Consumer Protection Commission (CCPC) says renewal is the best time to switch. Switching in the middle of a policy usually means a fee. Prices can differ between insurers, banks and brokers, so ask more than one type of seller.

1. Set a reminder a few weeks before your renewal date.
2. Get quotes from several insurers or a broker, for the same level of cover.
3. Compare the excess, windscreen cover, breakdown help and courtesy car, as well as price.
4. Ask your current insurer to match or beat the best quote.
5. If you pay monthly, check the APR, the yearly interest rate on instalments.
6. Put the new cover in place before you cancel the old policy.