Hard-pressed motorists could be paying more than €300 too much for their car insurance, figures show.

A study from Insuremycars.ie revealed misplaced loyalty was driving up premium prices and said if road users shopped around they could almost halve the yearly charge.

The research found on average Irish drivers were paying anywhere from €170 to €300 more than they should.

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While some motorists were even paying more than €300 too much.

Jonathan Hehir, Managing Director of Insuremycars.ie said: “We took three average driver profiles and looked at the quotes offered to them by five different providers.

“What the figures show is that no one insurer is consistently the cheapest or most expensive. In one case, a motorist was quoted €656 by one insurer, but had they shopped around they would have been able to secure the same cover for €344.

“Figuring out insurer’s pricing systems is nigh on impossible – some insurers favour older drivers, some favour couples, some diesel, some petrol, while others specialise in higher risk."

He added: “Motor insurance is one of the most fragmented products out there when it comes to pricing and quotes can vary wildly from person to person, and insurer to insurer.

“Based on this, there’s no way your average driver could possibly know which provider will offer them the best deal, without getting several different quotes from which they can compare.

“Shopping around for insurance will become even more important this year as motor insurance premiums could rise due to the huge increases in the cost of car parts and repairs.

It is only a matter of time before the higher car repair costs trickle down to insurance.”

He said many people assume if they stay loyal to one insurance company they’ll be rewarded but stressed this isn’t the case.

Mr Hehir explained: “Shopping around is still as relevant as ever when it comes to getting the best deal on the market, particularly given so many of us are squeezed financially due to the cost-of-living crisis.

“We however see it too often that motorists who have remained loyal to one insurer are invariably being offered a slightly lower premium this year and, thinking they are doing really well, are simply accepting it. However, if they went elsewhere, they could save hundreds more."

It comes as more than half of motorists would like or plan to reduce their car usage to help protect the environment.

While 28% claimed that the transport networks in their location are not adequate for them to do so, according to a separate study from Aviva Insurance Ireland DAC.

Aviva’s Billy Shannon said: “Reducing car usage where possible, particularly in urban areas, makes absolute sense and will help the environment by reducing motorists’ carbon footprint.

“It will also help ease the congestion in our major towns and cities.

“The expansion of cycle lanes and the reduction in the cost of public transport in major urban areas should help to encourage motorists to reduce their car usage where possible.

“Commuters can enjoy a less stressful journey by handing over the responsibilities of driving, parking etc., whilst at the same time making savings on their travelling costs”.

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