Car Insurance FAQ

We typically only shop for car insurance once a year or less, so it often feels like starting from scratch each time. How much insurance do I need? What factors affects my rate? Is there an easier way to shop for insurance? We answered these frequently asked questions and others in the following Car Insurance FAQ. Brush up on your car insurance knowledge before shopping for your next policy.

Q: How much insurance do I need?

A: Unfortunately, no simple answer exists to this question. Multiple factors contribute to optimal insurance coverage levels. Start by determining the minimum coverage required by the area in which you live. From there, consider the value of your car and the value of your assets. For example, if you have an expensive car and considerable assets, you will want to protect both the value of your car and yourself. If you were to get into an accident deemed your fault, the other driver could go after your assets if your insurance did not cover all the expenses associated with the collision. On the other hand, if you have an older car that you paid off years ago and few assets, you could get away with lower coverage levels. Also factor in your medical insurance coverage levels to determine if you need more coverage in this area through your car insurance.

Q: What factors affect my rate?

A: Obviously, the value of your car and your driving record affect the rates you receive from car insurance companies. The more traffic violations and accidents you have, the higher the coverage cost. Car insurance providers also generalize. For example, the company will look at claims filed over a period of time and then look at who filed them. If 18 to 24-year-olds filed more claims than 25 to 31-year-olds, then the younger age group will receive higher premiums. You could be 22 years old with a spotless driving record, but your peers with accidents and traffic violations drive up your rate. Providers also look at factors such as gender, exact age and where you live. All of these factors go into the calculations used to determine coverage costs.

Q: Is there an easier way to shop for the best-priced car insurance Ireland has available?

A: Yes. Use an insurance broker. A broker will do the comparison-shopping for you and deliver your best options. Choose a broker that allows you to fill out the application online and also offers phone consultations for any questions you might have. Using a Car Insurance broker can significantly reduce the amount of time you spend shopping for car insurance while also saving you money. Because of the high volume of plans they provide, brokers have access to lower rates you may not find on your own.

Q: Can anyone use an insurance broker?

A: This answer varies by the broker, but keep in mind that some are more selective about their clients than others. Being choosy allows certain brokers to offer lower prices on the policies they provide. One of the most successful car insurance brokers QuoteMe.ie requires the following of its clients before pricing policies:

– You must be a resident who has lived and worked in Ireland or the United Kingdom for the past three years.
– Your car must be right-hand drive and valued at €100,000 or less.
– You cannot have been refused insurance in the past nor had an insurer impose special terms or conditions on your policy.
– You cannot have been involved in an accident/loss nor had a claim against you in the previous five years.
– You cannot have convictions or pending prosecutions against you for any motor offense.

Q: How can I lower the price of my premiums?

A: When filling out the online application with an insurance broker, be sure to answer all the questions as some are used to determine whether you qualify for any discounts. If you do not see any discounts applied to the car insurance quotes provided by the broker, follow up by phone to see whether any exist. Common discounts include safe driver, multipolicy and security/protection of your car.

One final tip: Shop for car insurance more than once a year. While you save by opting for a six-month policy, insurance companies rarely offer 12-month policies anymore. This allows them to raise or, in some cases, lower your rates every six months. Talk to an insurance broker one month before your current policy is set to expire, so that you don’t feel rushed and end up renewing with your current company just to have it done.

Mike Murphy recently shopped for the lowest-priced Car Insurance Ireland has available. He used QuoteMe.ie and found the process to be easy and the rate to be lower than his current policy.