Car Insurance Premiums Rise in Ireland as Majority of Drivers Feel Cost Pressures

Dublin: Car insurance premiums in Ireland have increased over the past year, according to the latest Motoring Report by Carzone, highlighting growing financial pressures on motorists.

Despite the rise in premiums, the report found that only 36% of drivers switched insurance providers, even as 75% reported a change in their premiums. While most experienced increases, 22% said their costs had decreased.

The 2026 Motoring Report is based on a survey of 1,000 drivers combined with real-time marketplace data from Carzone. It shows that traditional vehicles continue to dominate, with 80% of respondents driving petrol or diesel cars, while only 5% have fully transitioned to electric vehicles.

Rising Costs Across the Board

The report underscores the financial strain faced by motorists. Just 7% of respondents said they had no concerns about the cost of driving. Insurance was identified as a major expense by 65% of drivers, while 59% cited fuel costs as their biggest concern.

Car ownership trends also reflect cost-conscious behaviour, with 86% of drivers purchasing second-hand vehicles, typically around five years old.

The average monthly cost of running a car has risen by €12 over the past year, reaching €224. Drivers in Leinster reported the highest average monthly cost at €232.

According to data from the Central Bank of Ireland, motor insurance costs increased by 9% last year, bringing the average annual premium to €623.

Connor Faughnan, an independent motoring expert associated with Carzone, noted that the rise in insurance premiums is part of a longer-term trend rather than a short-term spike.

Carzone, an online platform for buying and selling vehicles, provides users with tools to find dealerships and estimate the value of their cars.

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