Consumer Corner: Five expert tips on saving money when renewing your car insurance

From keeping your record clean to insisting on a better price, these tips come straight from insurers themselves

While 'haggling' isn't exactly a cultural phenomenon in Ireland, it's perfectly acceptable with car insurers, and your initial quote should be seen as more of a guide than a definitive price.

With inflation hiking up the cost of everything, car insurance is no different. We have compiled top five tips to save money on your car insurance.

1. Do not accept the first offer 

The absolute number one tip is to not auto-renew your motor insurance. Even if the quote is lower than last year's, do not be tempted to automatically accept it. Simon Moynihan of bonkers.ie says it is essential to shop around to give yourself the best chance of beating your renewal quote and reducing the cost of your car insurance. 

“Treat your renewal letter as a guide. It is the highest price you will pay for car insurance this year and you can do better. When you receive your renewal letter, don’t ignore it,” he said.

Mr Moynihan said you could save hundreds of euro by not auto-renewing, adding that staying loyal to one company is seldom rewarded where insurance is concerned.

2. Be prepared

Jonathan Hehir, Managing Director of insuremycars.ie said that the differences in quotes between insurers can be huge and the key to making savings is preparation and timing.

“Annual renewal dates roll around quickly and so, rather than letting them creep up, people should actively pull out their policy documents, take note of when they will be due to renew and put a reminder in their phone to start shopping around two to four weeks in advance of this.” 

Mr Hehir said the biggest piece of advice he would give to any motorist is to not simply accept the quote from your existing insurer at renewal time.

“Even if you see a decrease in the premium quoted compared with what you paid last year, this does not necessarily mean it is the cheapest quote available to you. Invariably it isn’t.” 

3. Consider the excess 

Car insurance policies may include an excess amount which is what you will pay if you claim. Mr Moynihan said you can usually choose how much you want this excess to be and it can make a big difference to the price you pay for car insurance.

“If you’re a motorist prone to greater risk then increasing your excess can help significantly in lowering your annual premium. We’d advise that you check your excess and reassess it every year upon renewal.” Mr Hehir said accepting an excess on your policy can be a good way of reducing your costs but then again, if it precludes you from claiming on your insurance then you will have to weigh up what really is the best option for you.

4. Add extra drivers

Adding another driver to your insurance policy can be a great way to reduce your premium as the company will assume you will be spending less time driving.

Mr Hehir said that also forgetting to take a younger driver off a policy can mean motorists are paying over the odds but in other instances, adding a named driver can make your premium cheaper.

5. Keep your claims record clean

By driving carefully you can easily build up your no claims discount, which is a discount that adds up each year. A No Claims Discount (NCD) will increase annually, provided you don’t make any claims. It is also worth noting that if you switch to a new insurance company your NCD can be transferred to the new provider.