Car Insurance

How much does car insurance cost?

Exploring the cost of car insurance based on your individual circumstances.

  • By Paddy Compare
  • 14 March 2021

The cost of car insurance quotes generally depends on the "risk" which the insurance company believes it is taking on when insuring your vehicle. When asking all of those questions on the form, the insurance company isn't just obtaining your details for record purposes. These details will be used to form a detailed risk profile of you and help determine the chance that you may make a claim on your policy during the term.

Until December 2012, insurers were able to consider the gender of the applicant when setting premium costs. However following a ruling from the European Court of Justice, this is no longer possible, and so, with all other factors being equal, men and women will pay the same for their insurance.

Many other factors come into play when determining the cost of car insurance. Firstly, the vehicle details. Cars with more powerful engines, or small sports cars more frequently used anti-socially will attract larger premiums. Older cars may also be seen as more risky and also cost more to insure.

Next are the personal details of the customer, and driving history. Young drivers statistically are more likely to be involved in an accident and so pay more for their premiums. Different jobs will result in different costs. Drivers who have been on the road for longer (even if just as a named driver on another policy) will generally receive lower quotes, due to their additional experience behind the wheel and therefore statistically with less chance of being involved in an accident.

Finally is the nature of the use and storage of the car. The fewer miles you drive, the less chance of an accident and so it is important to carefully consider this when applying for car insurance. Some insurance companies may ask if you regularly drive during peak times; again riskier. If you use your car for business miles (not including your commute to work) then you should also specify this. Insurance companies will be interested in where you store your car at night. Cars left on a driveway, in a garage or other private space will generally be cheaper to insure than those left on a public road or in a public car park.

As can be seen here, there are a wide number of factors which affect the cost of car insurance premiums. In Ireland,

The Irish Sun found that in November 2018, drivers under 30 can expect to pay an annual premium of €1648.70 for their car insurance. Those in the 30 to 39 bracket can expect to pay an average of €1027, 40-49 pay €851.40 and the lowest risk 50-59 group pay €807.40. Older drivers will find slightly more expensive premiums.

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