Motorists could save €300 by shopping around for car insurance, says Minister

Research by the Central Bank indicates that consumers could save around €300 by comparing car insurance options when renewing their policies.

Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy, told The Claire Byrne Show that premiums are now 37.6% lower than they were at the peak of July 2016, and 5.4% lower year‑on‑year according to the latest figures.

Troy credited reforms introduced by successive governments – including the rebalancing of the duty of care, personal injury guidelines and changes to the Injuries Resolution Board – for the reduction in costs.

To help motorists make informed choices, the government introduced a transparency code earlier this year. Under the code, insurers must provide a detailed breakdown of how premiums are calculated when a policy is renewed, allowing consumers to see exactly what cover is offered and how prices compare.

Despite the potential savings, the data shows only 9% of drivers switch their policy at renewal. Troy said more work is needed to raise financial literacy and awareness of the benefits of shopping around.

Source: Newstalk. Photo: Mikhail Nilov / Pexels.