How to Get Cheaper Car Insurance

As human beings, we’re unlikely to agree on everything, but if there’s one that surely unites us, it’s a desire to save money on insurance. As of September 2025, the average cost of car insurance in Ireland was roughly €746, according to the Irish Times. 

Car Insurance isn’t just important - it’s a necessity. However, that doesn’t mean you need to break the bank and overpay.  This guide will take you through the different types of insurance available, and provide you with some practical, realistic tips to get the best deal.

Understanding Your Car Insurance Options: Getting Started 

The first step to find the right - and, hopefully, cheaper - policy is to arm yourself with the knowledge of the different types of car insurance available in Ireland - it’s very much not a ‘one size fits all’ situation. 

Third Party Only 

The minimum legal requirement for driving a car - as we noted, insurance is a necessity. 

Third Party Only covers liability to third parties, be it damage to another person’s vehicle or property, and/or injuries sustained by somebody else in an accident that you have caused.

This policy does not cover any damage to your own vehicle in the event of an accident, nor injury, nor theft, nor fire. 

Third Party Fire & Theft

This policy does cover instances of fire, theft, or attempted theft of your vehicle. 

This is the most basic form of car insurance that AIG Ireland offers - it covers your costs if your car is damaged by theft or by fire. The policy also covers the costs of the other party involved in the event of an accident. 

It will not, however, cover your personal costs or the costs to repair your car in the event of an accident - no matter who is at fault. 
 

Comprehensive

Comprehensive is the most substantial car insurance policy available. 

Comprehensive car insurance is all about going the extra mile in terms of protection for you and your vehicle. Medical expenses, personal accident cover, and emergency treatment are just a few of the key benefits on offer.

For a full overview, see our guide to Comprehensive Car Insurance.

10 Actionable Tips to Get Cheaper Car Insurance

1. Compare Car Insurance Quotes Annually

Insurance prices aren’t static and can fluctuate on an annual basis depending on a variety of factors. 

Everything from changes in trends to good old fashioned market competition is on the table, with the end result hopefully swinging in your favour. 

Your own driving circumstances and behaviour may change during the timeframe of your contract, which could influence your overall premium - have your risk factors changed due to your location, commuting habits, vehicle type, etc. 

It’s always worth keeping an eye on the different insurance quotes out there.

2. Choose the Right Level of Coverage for Your Needs

It stands to reason that an easy way to save money is not to waste it, so don’t commit to a car insurance premium that you simply do not need. 

Plenty of choice can invite confusion and pressure, so scale everything back to you and what you specifically need. Young and first-time drivers, for instance, deserve their own unique focus, which is why we created AIG BoxClever. 

If that applies to you, you’ll find a purpose-built system that prioritises a fairer, simpler, and safer approach. 

If you’re a driver with plenty of miles on the clock, sidestep BoxClever and consider something much more comprehensive and tailored to your needs. 

3. Increase Your Voluntary Excess

What is voluntary excess? 

This is an optional amount you agree to pay in the event of a claim, and thus an additional cost to any other excesses applied by your insurer. 

You are able to set the amount yourself at the time of signing a new insurance policy or when renewing an existing one. The higher the amount, the lower your premium. 

The presence of voluntary excess may influence your decision-making in the event of a possible claim, so it’s important to choose an amount that you can comfortably afford. 

4. Drive Safely and Build Up Your No Claims Bonus

It’s worth underlining that safe driving is to be encouraged at all times for the benefit of you and everyone around you. 

Driving safely has its extra perks, too - think of your no claims bonus and the significant discount that can ultimately reduce the cost of your car insurance. 

AIG Ireland offers a no claims bonus that reaches its maximum discount when you have six or more years consecutive claims-free. So, stay safe and keep that bonus growing. 

5. Consider a Black Box (Telematics) Policy

We mentioned our BoxClever option earlier, which is geared towards younger and less experienced drivers. So, how does it work? 

Telematics, or ‘black box’ insurance, uses a small device installed in your vehicle to monitor driving behaviour in real-time, capturing how, when, and where you drive. This type of insurance analyses driving patterns such as speed, acceleration, braking, and time of day. 

AIG’s innovative telematics system, BoxClever, is designed to offer a nuanced and fair approach to car insurance, tailoring your insurance premium uniquely to your habits and helping to bring your costs down in the process. 

6. Improve Your Car’s Security

It’s important to always be vigilant when it comes to things like car theft - we all hope to never encounter such a scenario, but it’s best to put preventative measures in place. 

As reported at the end of December 2023, car theft and related offences in Ireland soared by almost 60% since before the Covid-19 pandemic, as car-specific incidents of theft increased much faster than other forms of theft. 

Meanwhile, in February of 2024, the Irish Independent underlined the troubling statistic that a car is stolen in Dublin every three hours. 

A good alarm system should be a standard inclusion in any car purchase, and it’s worth looking into other anti-theft technology like immobilisers, smart keys, and GPS tracking devices. Be mindful of secure parking when you’re leaving your vehicle behind for a little while, too. 

These methods don’t just lower the risk of theft — they can also help reduce your premium. For a full breakdown of the best ways to prevent car theft, see our Comprehensive Car Theft Prevention Guide.

7. Pay Annually Instead of Monthly

If you can afford to, consider getting ahead of yourself by paying your annual premium in one lump sum rather than the usual monthly deposit. 

It’s a much bigger outlay, naturally, but in doing so you can sidestep monthly interest charges, eliminating them entirely for the year and making a decent overall saving. 

8. Accurately Declare Your Annual Mileage

Not to sound too presumptuous here, but allow us to stress the value of being both honest and realistic when it comes to declaring your annual mileage - lower mileage often translates to lower premiums. Again, though, be honest! 

9. Review Your Named Drivers 

Your premium is always up for assessment, and that includes any third party involvement such as anyone else who is named on your policy. 

How has their presence impacted your vehicle and thus your premium over the past year? Do you need to make a change? 

Removing young or inexperienced drivers, or adding an experienced driver as a secondary driver - provided this is both applicable and truthful in this instance - can sometimes reduce costs. 

10. Choose Your Car Wisely (Especially for New Drivers) 

Your choice of car may well tell your insurance provider a lot about you. 

A car deemed to be a ‘luxury’ item, for instance - sports cars, expensive models, etc - will attract a considerably higher price for repair and replacement, hence a higher insurance premium. These cars may also be associated with high speeds, thus adding to the potential risk factors. 

Custom modifications such as engine upgrades or cosmetic enhancements can also raise the premium due to increasing the market value of the vehicle, and arguably marking the car as a more valuable target for theft. 

It’s not just brand new flashy vehicles, though - older cars can be subject to higher premiums due to wear and tear causing degradation over time, difficulty in sourcing replacement parts, and a lack of modern technology and safety features. 

Remember that the make, model, engine size, and security features of a vehicle will impact the overall insurance costs. For more, check out our guide to running costs.

Visit our Buying a Car Hub for practical tips and guides to help you make informed car-buying decisions.

Get Your Car Insurance Quotes Today with AIG Ireland

Now that you’re on the road to more affordable car insurance, explore AIG Ireland’s car insurance cover benefits.

Now that you’re on the road to more affordable car insurance, we encourage you to look up AIG Ireland’s detailed cover benefits, and get a car insurance quote today.