€287 Million Saved by Car Insurance Companies in the Republic of Ireland Over 2020

287,194,893

…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

selectedRegion.name

title.decrease

selectedRegion.decrease

title.saving

selectedRegion.saving

NumbersOverall 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 202035.07 %
Total estimated private car insurance payouts made over 2020€ 531,745,937
Estimated savings made by private car insurers during 2020€ 287,194,893
Estimated car insurance savings in the Republic of Ireland over 2020 (HelloSafe estimates)

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 :

35.07%
drop in car-related claims payouts
 

…in 2020 in comparison with 2019

€ 287m
saved by car insurance companies

…due to low traffic on the Irish roads all along 2020

€ 113m
saved by car insurance companies

…only in the region of Dublin

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.
RankCountiesDecrease in payoutsCar insurance savings on payouts over 2020
1Dublin region49,2%€113 886 209
2Cork34,5%€32 223 099
South Dublin49,2%€23 597 198
Dún Laoghaire–Rathdown49,2%€18 454 888
3Galway35,6%€15 805 975
4Kildare35,0%€13 398 613
5Meath33,1%€11 114 166
6Limerick31,2%€10 462 083
7Louth37,7%€8 359 770
8Tipperary28,3%€7 779 627
9Wexford28,7%€7 393 013
10Wicklow29,3%€7 179 725
11Donegal21,2%€5 806 455
12Waterford27,1%€5 416 761
13Kerry21,2%€5 387 545
14Mayo22,2%€4 984 720
15Clare22,3%€4 558 662
16Kilkenny25,4%€4 341 623
17Laois29,5%€4 291 482
18Westmeath26,5%€4 053 415
19Offaly30,0%€4 023 950
20Cavan26,5%€3 478 348
21Sligo25,7%€2 897 747
22Carlow27,6%€2 703 457
23Monaghan25,2%€2 662 540
Fingal49,2%€2 505 764
24Roscommon20,1%€2 232 060
25Longford24,5%€1 722 886
26Leitrim18,7%€1 030 961
Car insurance savings made in 2020 in the Republic of Ireland counties over 2020 (HelloSafe estimates)

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.

telechargement

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”.

Our methodology

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.

About Hello-Safe.co.uk

Hello-safe.co.uk is a comparison platform which is shaking up the insurance market – giving you access to the best UK insurance deals in less than 30 seconds. Safe is supported and financed by Blue, an Insuretech Venture Capital firm. We have developed a unique comparison technology that gives access to cover details and quotes without customers having to give their phone number or email address. This engine is the result of four years of hard work.

Get to know Hello-Safe.co.uk.

For all press enquiries, please contact :

new project

Alexandre Desoutter
Communications & PR officer