There is a fairly healthy range of options open to farmers when it comes to finding the best policy for their needs. All the major companies in the market have sales representatives and brokers who are happy to talk to customers about the cover they require.

For simple renewals, such as a car insurance policy, the use of comparison websites should usually suffice. However, with many farmers having complex needs for insurance covering risks from animal theft to tractors cover to public and employer liability and even crop insurance, it is almost always best to discuss your policies with a suitably qualified broker.

Costs

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.

Different insurance sectors have had different price dynamics over recent years. While the Central Statistics Office (CSO) does not produce a breakdown of data for farm policies, 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 have risen in recent years – Irish Farmers Journal analysis shows that the price of concrete is 55% higher than it was in early 2021 – it is no surprise to see that the cost of home insurance has risen in recent years.

Despite falling significantly in the last decade, the price of car insurance is back on the rise again, according to CSO data.

The organisation recently changed how it collects car insurance price data to better reflect the actual costs facing drivers. It now web-scrapes quotations for a larger number of driver profiles and has increased the sample number to produce what it calls a “higher-quality index”.

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.

However, traditionally, the highest costs around motor insurance have been the price of personal injury claims. The Government, since the establishment of the Office to Promote Competition in the Insurance Market in 2020, has sought to create some clarity and guidelines on the size of personal injury claims.

Among the biggest developments there has been the introduction of judicial guidelines in 2021 which put specific values on payouts for specific injuries. For example, the loss of a hand can receive compensation of up to €150,000 while a broken little finger can be worth as little as €500. Critically, the guidelines have resulted in lower payments for injuries, and much lower legal costs.

Legislation was introduced which would allow the Injuries Resolution Board (formerly the Personal Injuries Assessment Board) to engage in mediation in cases where liability hasn’t been agreed.

The introduction of the mediation service was originally for workplace accidents only, and last month that was extended to include public liability injury claims.

Dara Calleary, Minister of State with responsibility for the sector, said that legislation to extend the remit of the board to allow it to mediate on motor claims is due before the end of the year.

The IRB already decides compensation payouts for injuries in cases where liability is not contested.

A landmark Supreme Court case in April upheld the personal injury guideline compensation figures, giving further strength to IRB decisions, and leading to significant savings for insurance companies on legal costs involved in fighting cases in court.

The most recent report from the IRB showed that the average award in motor insurance cases was 39% lower in 2022 than they were in 2020, before the guidelines were introduced.

However, the data shows that insurance companies have been very slow to pass any savings on to consumers.

Public liability

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

Amendments to the occupiers liability act, signed into law last year, 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.

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

In 2023, the Motor Insurers’ Bureau of Ireland (MIBI) received almost 2,000 claims related to uninsured or untraced vehicles.

The costs of those claims are paid for from motor policies of insured drivers – the MIBI said it added between €30 and €35 to every car insurance policy in the country last year.

Again, there are recent developments which should lower that cost.

Gardaí are now provided with daily data on insured cars in the country, which will allow them to check if a car is insured in seconds.

Gardaí have the power to seize uninsured vehicles which are on the road. Minister of State Neale Richmond said at the launch of the new detection capability that, “it is in the interests of everybody to get those uninsured drivers off the road, and also to get insurance premiums down”.