Before you switch insurer, check your policy excess*

When reviewing your car insurance at renewal time, it’s helpful to understand an important part of your policy - the excess.

 

What is a car insurance excess?

The excess is the amount you must pay towards the cost of a claim before your insurer covers the remaining amount. The exact excess that applies to your policy is shown on your policy schedule.

 

For example, if your excess is €300 and the cost to repair damage to your car is €2,000:

  • You pay €300
  • Your insurer pays €1,700 (subject to policy limits)

 

With many comprehensive car insurance policies in Ireland, the standard excess for accidental damage is often around €300, although the exact amount depends on the insurer and policy.**

 

Compulsory and voluntary excess

Car insurance excess can include two parts:

• Compulsory excess – this is set by the insurer and applies automatically if you make a claim.

• Voluntary excess – this is an additional amount you may choose to add to your policy.

 

Drivers sometimes choose a higher voluntary excess because it can help reduce the insurance premium.

In general:

  • Higher excess → lower premium
  • Lower excess → higher premium

This reflects how much financial risk the insurer takes on.**

 

What happens if you switch insurer?

If you decide to switch to another insurer, it’s important to know that policy features do not usually transfer between insurers.

 

While your No Claims Discount (NCD) can normally move with you when changing insurers, other policy benefits are specific to the policy you currently hold.

 

For example, benefits such as:

  • reduced or Zero excess options
  • breakdown assistance
  • protected no-claims benefits

may not apply to a new policy unless they are included or selected again.

 

The new insurer will apply their own excess amount and policy terms, which could be higher or structured differently from your current cover.

 

Other excesses may apply

Depending on the policy, additional excesses may apply in certain situations, such as:

  • claims involving younger drivers
  • claims involving certain named drivers
  • specific types of claims or policy conditions

These details are outlined in your policy documents.

 

Review both price and cover at renewal

When comparing car insurance policies, it’s important to consider more than just the premium.

 

Looking at both the premium and the level of excess can help you understand how much you may need to contribute if you ever need to make a claim.

 

Taking time to review the benefits included in your current policy can help you decide what cover best suits your needs.