Understanding Car and Motorbike Insurance Prices

Insurance premiums in Ireland have risen mainly due to higher claim costs. Inflation has made vehicle repairs, parts, labour, and medical and legal expenses more expensive, increasing the overall cost of claims.

Market factors such as more claims, higher average claim costs, supply chain issues also play a role.

However, each customer’s premium is still based on their own circumstances, so changes can vary. Insurers aim to keep prices fair while ensuring they can cover claims.

Contact our customer support team who can help you understand more about what may be affecting your premium.

• We regularly review our prices to make sure they’re as up to date as possible. So sometimes this means that your premiums may change, even though your personal details haven’t.
• Insurance works on a principle called risk pooling. Your premium isn’t calculated in isolation, it reflects the overall claim experience of a group of drivers similar to you (same age, location, vehicle type, and other factors). 

If claims in your risk group were higher than expected everyone in that pool shares the costs, even if you personally had no claims. This approach helps keep insurance fair and sustainable for all customers.

Contact our customer support team who can help you understand more about what may be affecting your premium.

• Review your cover: Review both the level of cover and additional add-ons and decide if they are right for you.
• Multi-Policy Discount: You can save up to 10% if you or your spouse/partner/co-habitant at the same address have another policy with us. For full details go to https://www.redclick.ie/multipolicy-discount.
• Increase your voluntary excess: A higher excess can sometimes lower premiums.
• Pay annually instead of monthly:  Avoid monthly fees to save more.
• Review driver details: Removing occasional or no longer needed named drivers could reduce your premium. Remember to keep all drivers’ details, including licence details, up to date and accurate.
• No claims discount: we reward you with an increasing no claims discount for each year you are claims free (up to 9 years).
• Choose your vehicle wisely: Engine size, repair costs and safety features all affect insurance prices. Vehicles with smaller engines and good safety ratings are often cheaper to insure.
• Shop around: Prices can vary between insurers, so compare quotes. Use comparison sites, but also check directly with insurers or brokers, as not all are listed online.

Contact our customer support team who can help you understand more about what may be affecting your premium.

• Total Claims: The money paid to repair or replace vehicle or property, plus medical costs and compensation for injuries from insured accidents.
• Business Expenses: These are the costs of running the business - like staff wages, office bills, computer systems and admin.
• Broker Commission: Fees paid to brokers who help customers find the correct cover to meet their needs.
• Reinsurance: Insurance for insurers. It helps protect against big or unexpected claims by sharing the risk with other companies.
• MIBI: Refers to contributions to the Motor Insurers’ Business of Ireland. This goes to a fund that helps people hit by uninsured or unknown drivers. All insurers must contribute to it.Profit: What’s left over after all costs. It helps keep the business sustainable.

Source: National Claims Information Database October 2025 issued by the Central Bank of Ireland.

Contact our customer support team who can help you understand more about what may be affecting your premium.

When setting motor insurance premiums, insurers look at different factors to estimate how likely a claim is and how much it might cost. These typically fall into main areas:

• Driver Information
• Vehicle Information
• Market and Claims Information
• Policy information

Premiums can vary between insurers because they may use different data or place more importance on certain factors. Your premium is based on a combination of your personal circumstances and wider market trends.

Contact our customer support team who can help you understand more about what may be affecting your premium.

Different providers assess risk in different ways, so prices for similar cover can vary.

Shopping around can also help you:

• Compare cover and policy features
• Check differences in optional extras and excess levels
• Make sure your policy still meets your needs

Starting early gives you more time to review options and make an informed decision, even if there are price differences. 

Contact our customer support team who can help you understand more about your premium.

Your premium can increase even if nothing has changed because it’s influenced by both your personal details and wider market factors.

Increases in repair costs, parts, labour, medical and legal expenses, and overall inflation can raise the cost of claims across the market. Insurers may adjust premiums to ensure they can cover these costs.

Your premium is based on a mix of your individual risk profile and these broader trends, so changes can happen even without any claims or updates on your policy. If you would like more information, RedClick can explain the main factors affecting your renewal price in line with the Motor Insurance Transparency Code.

Contact our customer support team who can help you understand more about what may be affecting your premium.

While risk is the main factor in pricing, other elements can also influence your premium, including:

• Operating costs: Claims handling, customer service, fraud prevention, and administration
• Reinsurance: Protection insurers buy for large or unexpected claims
• Levies and charges: Mandatory industry costs included in premiums
• Competition: Insurers may adjust prices to stay competitive
• Taxes: Government charges such as Insurance Levy and VAT

These factors, along with your risk profile, all contribute to the final price of your insurance.

Contact our customer support team who can help you understand more about what may be affecting your premium.