17 March 2026
How can I get cheaper car insurance in 2026? 11 top tips
5 minutes
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Your car insurance premium is shaped by several factors, including your age, driving history, vehicle type, location, and the level of cover you choose.
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With car insurance, there are three main cover levels to choose from: Third Party Only, Third Party, Fire and Theft, and fully comprehensive cover.
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The average premium in Ireland is €623 according to the Central Bank of Ireland*, but individual prices vary depending on your personal risk profile and how you use your car.
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Choosing a low insurance group car, improving security, limiting mileage, or using a black box can all help lower your insurance costs.
With the cost of living continuing to climb, car insurance prices are rising too. The good news is that your cover doesn’t have to break the bank. In this guide, we break down factors affecting your premium, what drivers typically pay, and smart tips to help you save money and find affordable car insurance cover.
What’s covered
- Factors affecting car insurance costs
- What’s the average cost of car insurance in Ireland?
- 12 tips for cheaper car insurance
- FAQs
Get in touch with us! A member of the Howden team would love to help you find a policy that's right for you!
Factors affecting car insurance costs
Understanding how insurers calculate your premium makes it easier to see where your price comes from and why it changes. Most insurers look at the following core factors before giving you a quote:
- Policy type and level of cover
- Driver age and experience
- Driving history (i.e. criminal record, any penalty points, and claims history)
- Where you live
- Vehicle type and value
- Occupation
- Your car's overnight location and storage
- Security
What’s the average cost of car insurance in Ireland?
A report from the Central Bank of Ireland (October 2025) found the average written premium to be €623. This is a 9% increase from the previous year.
It's worth noting that your own premium may look very different from this figure. The actual cost of your car insurance premium will depend on your personal risk profile and the car you drive, among other things.
11 tips for cheaper car insurance
There are still plenty of ways to reduce the cost of your car insurance. Here's our 12 top tips that could help you save money on your premium:
1. Choose a car in a lower insurance group
Opting for a car in a low insurance group is an effective way to keep your premiums affordable. Your car’s make and model determine its insurance group, which directly influences your premium.
Cars in group 1 are the cheapest to insure, while group 50 is the most expensive. Smaller, less powerful vehicles with good safety features usually sit in the lower groups, helping to keep costs down.
2. Choose a black box policy
A black box (also known as a telematics device) can help reduce your premium over time. It’s fitted to your car and monitors your driving habits (such as speed, braking and acceleration) then sends this information to your insurer.
If you consistently drive safely, your insurer may reward this when it’s time to renew, as it demonstrates that you’re a lower-risk driver.
3. Increase your voluntary excess
Increasing your voluntary excess (the amount you agree to pay if you make a claim) can help reduce your premium. In general, the higher the excess, the lower the premium. Just make sure you choose an amount you could realistically afford should you need to make a claim.
4. Limit your mileage
The more miles you drive each year, the higher your insurance is likely to be. This is because insurers view increased time on the road as a greater risk due to the increased chance of having an accident.
Reducing your annual mileage can help bring down your premium, especially if you don’t drive regularly. Just make sure you give accurate mileage estimates to your insurer, as inaccurately reporting your mileage could cause issues if you need to claim.
More importantly, deliberately underestimating your mileage counts as insurance fraud and is illegal.
Another option is a limited mileage policy, where you agree to stay under a set annual mileage. This could make you eligible for discounts on your insurance premium.
5. Pay annually
Paying monthly might feel more manageable, but it often comes with added interest. If you can afford to pay your premium in full, it’s almost always the cheaper option overall.
6. Select your insurance occupation carefully
What you do for a living can directly influence your insurance price. This is because insurers consider some professions (such as hospitality workers or couriers) as more likely to claim than others (such as teachers), who may attract lower premiums.
7. Improve your vehicle security
Installing additional security features, such as alarms, immobilisers or tracking devices, can make your car less appealing to thieves. Let your insurer know about any of these changes, as they may reduce your premium.
8. Be mindful about which modifications you make
Only modifications that genuinely improve safety, and are approved by the industry, are likely to reduce insurance costs – and you must inform your insurer before making any changes.
Most modifications, however, increase premiums. They can attract unwanted attention from thieves, and some insurers won’t cover modified vehicles at all. Those that do often charge significantly more.
9. Build your no claims discount (NCD)
A no‑claims bonus (also known as a no claims discount) gives you a discount on future premiums when you avoid making claims, and the value increases over time. It’s one of the easiest ways to lower your insurance costs while demonstrating safe driving to your insurer.
Once your no claims discount reaches the maximum discount level, you could choose to add NCD protection, which protects your discount should you need to make a claim in the future. This typically allows only a set number of claims within a given period without losing your discount.
10. Park your car somewhere safe
Your car's overnight location is a key factor in determining your insurance premium. Storing it in a garage is the safest choice and typically means lower risk. If a garage isn’t available, a driveway, private property, or secure compound is better than parking it on the street.
The more detail you can give us about where your car is kept, the easier it is for us to find the best possible premium for you.
11. Speak to a broker
At Howden, we can help you explore the options available in the market and advise you on the most suitable cover based on your needs. We can guide you on what insurers require and how to secure the best value for your circumstances.
What do I need to get a car insurance quote?
To get a car insurance quote, you will need to provide us the following information:
- Your personal details – your name, your age, where you live, your job title etc.
- Information about your car – the registration number, its make and model, how old the car is.
- How you’ll intend to use the car – will you be driving the car for pleasure or business? What is your annual mileage?
- Your driving record – we’ll need your driving license number, how long you’ve been driving for, and whether you’ve made any claims in the past.
Sources:
This is a marketing article from Howden Insurance. The information in this guide is accurate at time of publication. This content is provided for general information only and does not constitute financial or insurance advice.
Cheap car insurance FAQs
At what age is car insurance most expensive?
Car insurance is usually most expensive for younger drivers under 25, especially those aged 17–20. This group has the highest risk profile, which leads to higher premiums.
How do you get cheap insurance for young drivers?
Young drivers can often lower their premium by choosing a car in a low insurance group, adding an experienced named driver, and opting for a telematics (black box) policy. Limiting mileage, improving security, and increasing your voluntary excess can also help reduce costs.
Speaking to a broker like Howden is a great way to find insurers who offer affordable car insurance for young drivers.
What's the best car for cheap insurance?
Smaller, low‑powered cars with strong safety ratings and low repair costs tend to be the cheapest to insure. Models in the lower insurance groups are generally the best choice.
What makes a car cheaper to insure?
Cars with the following attributes tend to be cheaper to insure and hence fall into lower insurance groups:
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Good safety and security features
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Low market value
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Low repair costs
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Smaller engines
Will adding a named driver make my car insurance cheaper?
Adding an older, experienced driver can sometimes reduce your premium, as it may lower the perceived risk. The named driver must genuinely use the car. Otherwise, it could be considered fronting, which is illegal.
How does the value of my car affect my car insurance quote?
Higher‑value cars generally cost more to insure because they’re more expensive to repair or replace, while lower‑value vehicles usually attract lower premiums.
Are older cars more expensive to insure than newer cars?
It depends on the car. Older cars can sometimes be cheaper to insure, but if they lack modern safety features or have scarce parts, they can be more costly. Newer cars with advanced safety tech often rank better for insurance costs, despite being worth more.