Switching your car insurance – Tips on how to save

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Car insurance is probably the most common annual bill that people switch providers each year. There can be hundreds of euro between different insurers’ quotes, and it will go a lot further in your own pocket! This is a big annual bill on which we should save every possible cent.

Switching does not have to be complicated, but it takes some know-how. It will become second nature once you’ve gone through the process.

Top tip – keep a note of when your insurance is due and start the process of shopping around a month before the renewal date (any earlier, and you won’t have a valid quote). Doing this will help you take control and not force you to renew at the last minute simply because it is too late to shop around.

We’ve done the hard part for you! Below, we explain what you need to do to get started and how to switch car insurance providers.

 

Get prepared!

  1. If you’ve received your renewal quote, great, you’re already started. Make sure you have the details of your policy to hand so you can compare.
  2. Have your driver’s licence in front of you. You may be asked for any named driver’s licences, too, but it’s not essential as you can supply them later.
  3. If you’ve had any claims in the past 5 years, you’ll need to supply the details of this (these details will be in your current policy details).
  4. You’ll also be asked if you have any penalty points – when you got them, when they’re due to expire and why you got them. This can increase your premium.
  5. If you are currently with the same insurance company for both your car and home, you might be looking to move both or to move your car over to the same insurer. This can allow you to avail of their multi-policy discount; if this is the case, you’ll also need your home insurance policy number to hand.
  6. If you’re going to pay for your insurance in full, have your card ready, or if you are going to sign up for a direct debit, have your bank details (IBAN and BIC) ready.

Make Decisions

What type of insurance are you looking for – there are three main types of car insurance:

  • Third-party (minimum requirement) – this means if you cause an accident, only the other drivers and passengers (including yours) will be compensated. Any damage to your car will not be compensated/covered.
  • Third-party, fire and theft – this includes the third party but also covers protection to your car caused by fire or theft. This is often used for older cars as it can be cheaper.
  • Comprehensive – this includes all of the above plus covers your car and belongings. This is the highest level of protection – subject to any extra optional cover you might want to take out.

Are you going to pay the full insurance bill or pay by instalments?
Some insurance companies offer 6 and 9-month plans with a deposit upfront. Be sure to check how much you’re actually paying, as some of these instalment plans can come with an APR of 23%. It’s generally cheaper if you can pay the premium all in one go (if this is an option for you). On top of the APR or interest charged on installment plans, insurance providers are applying additional costs on top of this.

What will a new insurance company ask me to get a quote?

  • Your age.
  • Your driving experiences.
  • Your address and, if different, where the car will be parked overnight.
  • What is your occupation, and will you use the car for business purposes? If you currently use your car for work, the class type (level) will be listed on your renewal quote.
  • Your annual mileage (be sure to clarify if you’re stating in kilometres or miles; a lot of places still quote by the mile rather than a kilometre. If you’re doing your quotes online, they might have a calculator for you)
  • Your car. This includes the model and make, age, and engine size if any alterations have been made that might affect the performance. They may ask for the registration number and be able to pull your car details up.
  • What excess you want on your policy – often, this is set at a default €250-€300. Be sure to check this, especially when comparing policies as you may have a higher excess on your current policy, meaning your quote could be cheaper.

Top tip – Is there someone else you know with a full, clean driver’s licence that would use the car? Sometimes, adding them as a named driver to the policy will actually reduce the overall cost. Ask the agent to look into this for you.

 

Optional extras

Some insurance companies include some “extras” as standard, such as windscreen cover and breakdown assistance. Be sure to check what’s included and what costs more.
Other optional extras can include:

  • Legal cover
  • Key replacement cover
  • Courtesy car

Now you’ve got everything together and know what to consider, it’s time to search for the best deal. Here are some price comparison websites to help make the switch easier.

 

Comparison websites

If you find that you’re paying high APR on instalments, make a plan now. Start to put a little bit of money away each month, so, next year, you can pay it in full instead!

 

Contact Us

You can call the MABS National Helpline on 0818 07 2000, Monday to Friday, from 9am to 8pm and find the contact details for your local office.

Disclaimer: This blog does not represent legal guidance and is intended for guidance only. This blog is intended to assist you to make your own decisions and we will never suggest you use one provider over another. 

Note: We welcome references to and use of the content in this blog. However, please reference MABS and link said content if you choose to do so.

Originally posted: 21/03/2022

Last updated: 18/07/2024