Why has my Car Insurance premium increased?

Your Car Insurance premium might rise at renewal, even if your circumstances seem unchanged, because the calculation involves many factors that evolve annually. Personal details, industry conditions, and market trends can all affect the price you pay.

What personal factors influence car insurance premium increases?

These customer-specific factors may cause a premium change:

• Vehicle age - Older cars often shift to higher-risk categories annually.

• Vehicle type - Changing vehicles or updates to our pricing strategy (e.g., fuel type or engine size) can affect your risk rating.

• Named drivers - Adding or removing drivers, or changes in their personal details, can adjust risk.

• Driver age and experience - Premiums reflect driver age, licence type, and years of driving experience. Younger or older drivers typically face higher costs.

• Location of risk - High-traffic, urban, or high-crime areas usually increase premiums. Our assessment of your area can also change annually.

• Occupation and usage - Using your vehicle for commuting or business adds risk compared to purely social use.

• Mid-term policy changes - Amendments made mid-policy year may be fully reflected at renewal.

• Claims and No Claims Discount (NCD) - Recent claims or lost NCD can significantly impact premiums.

• Penalty points - Penalty points on your licence raise your risk profile, increasing your premium.

How do external factors affect my premium?

External market forces beyond personal circumstances can also increase premiums:

• Claims costs - Rising injury awards and medical expenses directly affect premium levels.

• Legal fees - Increasing legal expenses associated with claims can drive up prices.

• Repair costs - Higher prices for parts and labour also raise insurance costs.

Insurance premiums depend heavily on the collective costs of covering claims, ensuring insurers remain financially stable and capable of honouring policy commitments long-term.

Can I reduce my Car Insurance renewal premium?

You might lower your renewal premium by reviewing your cover options, updating your policy details, or adjusting named drivers. It's also beneficial to maintain a good driving record and avoid unnecessary claims or penalty points.

Still unclear about your premium increase?

At 123.ie, we prioritise transparency. If you have questions about your renewal premium, our friendly Car Insurance Renewal team is ready to help you find clarity at 01 518 1404.

You can also reach our other teams through our contact us page or view our detailed policy documents for further insights.