While the most important consideration when selecting which insurance policy to take should always be that the right amount of cover is in place, anywhere a cost saving can be made is also very important.

The Central Statistics Office (CSO) does not produce a breakdown of data for farm policies, but it does have numbers for the change in the price of home and motor insurance (Figure 1).

The cost of both raw materials and labour for construction rose considerably in the aftermath of the pandemic and the supply-chain disruptions that followed it, and we can see that increase in rebuilding costs reflected in the higher premiums being charged, which have risen more than 13% since the end of 2023.

After falling significantly in the last decade, the price of motor insurance is back on the rise again, according to CSO data. Recent statements from insurers on the cost of motor insurance point to the higher value of modern cars and their increased complexity, which makes repairs more expensive.

They also cite much increased labour costs within the car-repair industry. The motor insurance sector is the most competitive in the industry with more than a dozen companies in the space. Despite this, policy costs have increased almost 10% since the start of 2024.

The most recent Irish Central Bank report on the private motor insurance market does show the increase in the cost of damage repair. The increase in the number of damage claims in 2022 and 2023 has been accompanied by a much larger increase in the cost of those claims, clearly illustrating the increased expense of labour and parts (Figure 2).

Injury claims payouts from motor insurance policies were at €422m in 2023, down more than €100m from the €537m seen in 2014.

This reflects the success of the Injuries Resolution Board (formerly the Personal Injuries Assessment Board), and the introduction of judicial guidelines for payouts for specific injuries, for both putting a cap on the size of payouts and also increasing the speed at which those settlements are reached.

There is a cloud on the horizon for those costs, with ISME, the small business lobby group, raising concerns this week about the proposal to increase the scale of personal injury awards under the judicial guidelines by 17%.

Minister for Justice Jim O’Callaghan is set to bring the increase to Cabinet ahead of the Dáil summer recess on the back of a recommendation from the Judicial Council.

ISME said the scale of the increase is a capitulation to vested legal interests, adding that insurance costs have not fallen following previous reforms and “now the Government wants to undo the little progress that has been made”.

Public liability

For most farmers, the thought of a member of the public injuring themselves after entering their land – either with or without permission – has long been a huge concern.

Recent amendments to the Occupiers Liability Act have done some work to reset the balance of liability back towards the member of the public and away from the landowner.

Among the key changes are that courts have to take regard of the care visitors may reasonably be expected to have for their own safety, and also the probability of an accident occurring and cost of eliminating risks.

Occupiers are entitled to assume that an adult can look after their own welfare.

The standard of care obligation for landowners, when it comes to risks on their property, has been changed from one of “reasonable knowledge” to that of “acting recklessly” in relation to the hazard.

The amendments also limit the circumstances under which a landowner can be liable when a person enters a property for the purpose of committing an offence.

Finally, there is now a broad range of circumstances where it can be shown that a visitor to a farm voluntarily assumed risks which resulted in injury.

Previously, a written agreement was required.

Uninsured drivers

The introduction of the Irish Motor Insurance Database system which allows gardaí to identify cars on the road being driven without insurance has made significant progress in reducing the number of uninsured drivers.

According to research conducted by the Motor Insurers’ Bureau of Ireland, the number of uninsured motor vehicles on the road has been cut in half since 2022.

Over 18,500 vehicles were seized by gardaí in 2024 for driving without insurance.

There was a further development to the data available to gardaí earlier this year with the addition of driver licence numbers to insurance policies for every driver covered by the policy.

However, with just over 100,000 vehicles still being driven without insurance, accidents with uninsured drivers still happen.

In those cases, the costs of claims are covered by the Motor Insurers’ Bureau of Ireland (MIBI).

The costs from those claims are then recovered through a charge by the MIBI on the policies of insured drivers.

A reduction in the number of uninsured drivers, should lead to a reduction in the number of claims handled by the MIBI, which in turn, should reduce the cost added to motor insurance policies.

Value for money

With all this in mind, here are a few tips for getting value for money while ensuring you have sufficient cover in place.

Whenever any policy comes up for renewal, it is worth your while shopping around before committing.

Even if you are happy with your current insurer, or broker, a lower quote from another company may lead to a discount on renewal with your current provider.

In 2022, the Central Bank banned a practice among insurance companies known as “price walking”, where the company charges more to customers who renew with them every year.

Basically, customers were charged a higher premium for no reason other than staying with the same provider. This change, however, should not discourage anyone from shopping around – a few hours spent getting the right policy at the right price could still save hundreds of euros.

You should start shopping around as soon as you receive your renewal notice to get a range of quotes in good time. It is worth noting that quotes will generally only be valid for one month.

It is critical to ensure that you have sufficient cover in place. With the recent large increases in rebuilding costs, be realistic about how much reconstruction will take.

If you are under-insured, your insurer will only be obliged to pay for the insured portion. For example, if your house rebuild costs are €500,000 and you are insured for €400,000, then your insurer is only obliged to pay four-fifths of any claim.

If there is €100,000 of storm damage done to your house, the insurer will only have to pay €80,000 of that claim, leaving you significantly out of pocket.

Other things worth looking out for are the size of the excess on your policy and any other add-ons that you might need.

Increasing the size of the excess – the amount you have to pay before the insurance company steps in – will reduce premiums.

Many insurers offer pay monthly options for policies. While these might seem like a good idea to reduce the pain of a significant bill, the interest rates and charges added can add a lot to the annual cost of a policy.

Making a claim

Finally, if the worst comes to pass and you need to make a claim, there are a few simple things that can be done now, and few things to keep in mind when the time comes to make a claim.

Try to have photographs of everything that is insured.

With cameras on every phone, it is not a lot of work to go and take pictures of machinery, vehicles, sheds and other buildings. Having these pictures will make everyone’s life easier, and probably lead to a faster, fairer claim.

When the time comes to make a claim, contact your insurer or broker as soon as you discover a problem.

Most policies will have an emergency contact number on them, use that as a first point of contact. Give brief details of what has happened and request a claim form. Follow the insurer’s advice as closely as possible.

In the case of larger claims an independent assessor may be employed to value the claim. You are entitled to hire your own assessor to negotiate on your behalf with the insurance company, if necessary.

Where there is a claim against you, the insurance company is under no obligation to keep you informed of the progress, or settlement, of any claim.

Overall, now is the time to check your policies to make sure there is sufficient cover in place, and to take lots of photographs of what’s insured.

Your future self will thank you one day if you find yourself having to make a claim.