SPONSORED BY KENNCO INSURANCE
The cost of car insurance for young drivers in Ireland can be a bigger obstacle to getting started as a new driver than the driving test itself.
But understanding why premiums are higher for young drivers and what you can do about it makes a big difference as you go about getting your first car insurance policy.
In this article, we’ve teamed up with our insurance partner KennCo Insurance to help get you started with insights and practical tips for new drivers.
Check out our guide for young driver’s looking for car insuranceTypes of Car Insurance Cover Explained
There are three types of car insurance cover available for young drivers:
1. Third Party
Third Party insurance gives you the most basic level of cover and is the minimum legal requirement in Ireland. It insures you against a claim made against you, such as property damage or personal injury, but will not cover the damage to your car.
2. Third Party Fire & Theft
Third Party Fire & Theft gives you the same cover as third party insurance, but includes additional cover for fire or theft of your car.
3. Comprehensive
Comprehensive car insurance includes third party fire and theft cover, but also covers any accidental damage to your vehicle. For example if your car is damaged while parked by an unknown person or damage to your vehicle in an accident that is your fault or where the fault can’t be proven. This cover is more expensive than third party but is recommended for young drivers.
What age must you be to get car insurance in Ireland?
For insurance purposes, young drivers are those aged between 17 and 24 years old. You must be at least 17 years of age to get car insurance in Ireland, which is the same as the minimum age required to get a driver’s permit to learn how to drive a car.
However, the age at which you can get cover does depend on the insurer.
Noel Gavin, Marketing Manager at KennCo Insurance, says, “For many families, getting a 17 or 18 year-old insured, whether that’s a car of their own or the family car, can be quite tough.”
The company has lowered the minimum age to hold a private car insurance policy in your own name from age 19 to 17 years of age, as of January 2026.
This means young drivers can access competitive car insurance earlier in their driving careers. Parents insured with KennCo can also now add children aged 17 and older to their policy as a named driver.
To get your first car insurance policy, you will need to provide a valid learner driver’s permit or driving licence.
Why Young Drivers Pay More for Car Insurance
Age is a big factor as to why young drivers struggle to get cheap car insurance. It is typically more expensive to get car insurance until you are 25 years old because car insurance is based on the risk of the driver.
Younger and less experienced drivers typically tend to pay higher premiums because statistically at this age you are more likely to be involved in an accident and make a high value claim compared to drivers over the age of 25 years old. Insurance companies have data to back this up. Data from the Road Safety Authority (RSA) also consistently shows that road users aged 16-24 are the highest-risk group on Irish roads (Driver spotlight report: Fatalities and Serious Injuries 2020-2024).
If you are a young driver taking out your first insurance policy, you won’t have the benefit of a No-Claims Bonus either.
What is a No-Claims Bonus?
A no-claims bonus is a discount a driver receives on their insurance premium based on the number of years they have held a car insurance policy without making a single claim.
The discount becomes higher the more years you’ve held your policy without an accident. A no-claims bonus only applies to the driver who has taken out the policy in their name.
A no-claims bonus will be worth a different amount to each insurer, but you will likely get a considerable discount if you have not made a claim in over five years or more.
To earn a no-claims bonus, you must not have made a claim for an entire year on your policy, and this will reward you with a one-year no-claims bonus. The more years of claims free driving you build up, the more your insurance premium will decrease each year.
Choosing a car with a lower-powered engine can keep car insurance costs downPractical tips for young drivers to get cheaper car insurance
There are several ways you can reduce your car insurance as a young driver:
1. Pass your driving test as soon as possible
The sooner you pass your test as a young driver, the better. Your insurance premium will go down the longer you hold a full driver’s licence.
2. Be sensible about your car choice
High-performance vehicles, SUVs or cars with large engines typically come with higher premiums. For a cheaper insurance quote, opt for a car with a smaller engine, as they come with lower risk for young drivers. Not only can this save you money on insurance, it’s also likely to be more fuel-efficient. Avoid any modifications as you will end up paying more for them because these sorts of vehicles are more likely to be involved in claims.
3. Use any named driver experience
If you’ve been a named driver on a policy, your insurer will take that experience into account. If you have not made a claim, you will be rewarded for that.
4. Add a named driver
Adding a more experienced driver to your policy like a parent or grandparent can also lower your premium, as your insurer may feel that you will be safer under their guidance. This is provided that the named driver hasn’t made a claim or has penalty points.
5. Keep your car safe
Adding better security like an alarm, parking your car off-street or keeping it in a garage may lower your insurance cost as you’re less likely to claim for a theft.
6. Pay annually instead of monthly
Most insurers charge extra for the convenience of spreading payments out over the year due to the added administration and interest fees involved. If you can afford it, try paying for your insurance in one go instead of monthly instalments.
7. Increase Your Excess
Your excess is the first amount of a claim that you must pay. For example, if your excess is €500 and you cause €2,000 worth of damage to your car (assuming the loss is covered), your insurer will pay €1,500 for repairs.
8. Shop around
Make sure to shop around for cheaper young driver insurance and get a quote from multiple insurers.
For a fast and reliable young driver car insurance quote, contact KennCo on 01 409 2600 today, or visit their website for an online quote.
KennCo Underwriting Ltd T/A KennCo Insurance is regulated by The Central Bank of Ireland.