…is the estimated amount of savings on payouts realized by the car insurance companies in the Republic of Ireland in 2020, with Covid-19 crisis impacting daily commutes
|Numbers||Overall numbers as for the Republic of Ireland|
|Total private car insurance payouts made in 2019||€ 818,940,830|
|Average claims decline across the Republic of Ireland in 2020||35.07 %|
|Total estimated private car insurance payouts made over 2020||€ 531,745,937|
|Estimated savings made by private car insurers during 2020||€ 287,194,893|
35.07% drop in car-related claims
2020 has been a year like no other for the people of Ireland. Indeed, with two national lockdowns taken in Éire, and many more restrictions measures taken across the island since the beginning of March, many Irish citizens were forced to stay home a great deal of time. As a consequence, a majority of daily commutes came to a halt, meaning fewer people on the roads, and a lower probability of accidents occurring. That’s confirmed by our estimates :
How much did car insurers save in 2020 in the Republic of Ireland?
As a result of many Irish citizens staying home and reducing their daily commutes, car insurance insurance claims have decreased a lot in the Republic of Ireland:
- On a national scale, the savings on car insurance payouts made by the insurance industry over 2020 in the Republic of Ireland amount to €287.2 million – corresponding to an overall 35.07% decrease in comparison with 2019
- As shows the chart below, Leinster accounts for the highest decrease in car claims over 2020 (- 40,3% in claims). Indeed, the Dublin region has been particularly impacted by the Covid-19 restrictions, which explains that commutes decreased more there – meaning higher car insurance savings.
Car insurance savings in the Republic of Ireland : county per county
When taking a look at the savings made by car insurance companies county per county in the Republic of Ireland over 2020, it appears that the most urbanized areas of the country correspond to those where claims decreased the most:
- Indeed, Dublin is the region where car claims decrease is to be the highest, with an estimated 49,2 % drop for the whole year
- The Galway (- 35,6%), Cork (- 34,5%) and Limerick (-31,2%) counties appear to be on top of the counties where savings where the highest after the capital, being also among the most populous urban areas of the country
- The counties of Kildare (- 35%), Offaly (- 30%) and Laois (- 29,5 %), which were put under local lockdowns before the whole country, also appear to have high decrease rates in car-related claims over 2020 in comparison with 2019.
|Rank||Counties||Decrease in payouts||Car insurance savings on payouts over 2020|
|1||Dublin region||49,2%||€113 886 209|
|2||Cork||34,5%||€32 223 099|
|–||South Dublin||49,2%||€23 597 198|
|–||Dún Laoghaire–Rathdown||49,2%||€18 454 888|
|3||Galway||35,6%||€15 805 975|
|4||Kildare||35,0%||€13 398 613|
|5||Meath||33,1%||€11 114 166|
|6||Limerick||31,2%||€10 462 083|
|7||Louth||37,7%||€8 359 770|
|8||Tipperary||28,3%||€7 779 627|
|9||Wexford||28,7%||€7 393 013|
|10||Wicklow||29,3%||€7 179 725|
|11||Donegal||21,2%||€5 806 455|
|12||Waterford||27,1%||€5 416 761|
|13||Kerry||21,2%||€5 387 545|
|14||Mayo||22,2%||€4 984 720|
|15||Clare||22,3%||€4 558 662|
|16||Kilkenny||25,4%||€4 341 623|
|17||Laois||29,5%||€4 291 482|
|18||Westmeath||26,5%||€4 053 415|
|19||Offaly||30,0%||€4 023 950|
|20||Cavan||26,5%||€3 478 348|
|21||Sligo||25,7%||€2 897 747|
|22||Carlow||27,6%||€2 703 457|
|23||Monaghan||25,2%||€2 662 540|
|–||Fingal||49,2%||€2 505 764|
|24||Roscommon||20,1%||€2 232 060|
|25||Longford||24,5%||€1 722 886|
|26||Leitrim||18,7%||€1 030 961|
For a specific report on car insurance savings made in Northern Ireland, please click here (beware, those numbers concern a different period of time)
Will companies refund their customers ?
The change in driving habits during lockdown also modified the risk assumptions used by insurance companies to calculate insurance premiums. Because of the reduction in traffic, Irish drivers were less at risk than expected during the whole year and thus represented a lower cost to insurers. Indeed, in April, under the pressure, Irish motor insurers had agreed a first time to give discount to their policyholders.
But with an average annual motor insurance premium of €653 at the end of 2019 – which already increased by 35% in 10 years (say numbers from the NCID), the Irish policyholders may be entitled to expect a discount on their premiums in the long run. With a second national lockdown now in place, the motor insurance industry will be back on the center of the customers attention.
Antoine Fruchard, insurance expert and CEO at Hello-Safe.co.uk
“With most people stuck at home, their cars have inevitably stayed in the garage. When the lockdown will be over and people will start going out again, the number of cars on the road is likely to increase back at pre-Covid levels. However, it is likely that customers will question why they continued to pay such high insurance premiums whilst they weren’t able to drive. It will be interesting to see if all the insurance companies will make more refunds, or which other kind of discount they will offer. Competition between them may be increasing in the coming months, and that means customers should see a slight drop in car insurance premiums – which would be fair given the economic crisis which may catch Ireland in the post-Covid world”.
We based our study on public and private information sources, including data disclosed by the Central Bank of Ireland through the National Claims Information Database (NCID). For further information on our editorial guidelines please click here.
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