Shop around to save €300 on motor insurance - research

New research from the Central Bank suggests consumers can save around €300 by shopping around for motor insurance.

Analysis by the regulator of quotations across 16 consumer profiles revealed significant differences in policy quotes for identical driver profiles across insurers.

However, it said insurers "all tend to differentiate between lower and higher risk customers in a consistent way".

The study noted that some consumers need to search "more widely" in order to achieve a lower quote, because "online quotes are not always available for higher-risk profiles - for example, individuals with limited experience or penalty points or those who use their vehicle for business use as well".

The Central Bank said these consumers "could explore broker channels or contact insurers directly".

The research is based on an analysis of online new-business motor insurance quotes obtained in June from eight of the main insurers, which collectively underwrite more than 90% of the Irish private motor insurance market.

According to the Central Bank's National Claims Information Database (NCID) 2025 report, the average motor insurance premium in Ireland is around €655.

The regulator's consumer research indicates that just 9% of motorists switch insurers, while one in five renew their policies without engaging with their insurer at all.

It also found that most consumers renew with their existing provider, and because they do not compare quotes they "could lose out on a better price or more suitable cover - especially higher-risk consumers, where the savings can be much larger".

However, Director of Insurance with the Central Bank Seána Cunningham said "it is not just about price. Consumers should also compare the level and type of cover provided to make sure they are getting the right cover for them".

In terms of how consumers buy motor insurance, the study suggests over half (53%) call their insurer, a fifth use a broker, 18% buy directly from an insurer's website, and just 4% use price-comparison websites.

The group representing insurers - Insurance Ireland - welcomed the research, with its Chief Executive Moyagh Murdock saying "there are some very positive messages for consumers in this report".

"Motor insurance prices are down more than 5% on last year, there is real choice in the market and, importantly, almost eight in 10 customers say they are satisfied with their current insurer.

"We encourage people to compare their options at renewal, but shopping around does not necessarily mean switching.

"Consumers can speak directly to their existing insurer, seek other quotes online or by phone, or use a broker. The objective should be to find the right combination of price, cover and service."

Ms Murdock said it is "also important that consumers understand the factors that influence their premium and take practical steps where they can".

"For learner drivers, progressing to a full licence is one of the most straightforward ways of improving their risk profile.

"Building driving experience, maintaining a safe driving record, avoiding penalty points and developing a claims-free history all matter over time," she said.