New Irish Motor Insurance Law: Mandatory Driver Numbers Explained

A Step Towards a More Transparent and Fairer Insurance Market

The Irish motor insurance industry is undergoing a major transformation with the introduction of a new law aimed at reducing the number of uninsured drivers on the road. From March 31, 2025, every driver in Ireland must provide their driver number when purchasing or renewing a motor insurance policy.

This law comes as an amendment to the Road Traffic and Roads Act 2023 and is not just an administrative tweak—it represents a fundamental shift towards greater transparency, more accurate risk assessment, and improved enforcement of motor insurance regulations. By mandating the collection of driver numbers, the government and insurers aim to close loopholes that allow uninsured drivers to remain undetected, ensuring that every vehicle on the road is properly insured.

At Inaza, we see this development as a significant step forward for the industry. Not only does it enhance compliance and fraud prevention, but it also lays the groundwork for a more data-driven and efficient insurance ecosystem—an area where AI-powered solutions like ours can provide immense value.

Why This Law is Necessary: The Fight Against Uninsured Driving

Uninsured driving is not a victimless crime—it increases premiums for law-abiding motorists, creates significant financial exposure for insurers, and leaves victims of accidents involving uninsured drivers in complex legal and financial situations.

The Cost of Uninsured Driving

Currently, it’s estimated that one in every twelve vehicles in Ireland is uninsured, making it one of the biggest challenges in motor insurance enforcement. These uninsured drivers not only pose a higher risk to road safety but also place a financial burden on compliant policyholders.

To put this into perspective:

• The cost of uninsured driver claims is indirectly paid by insured drivers, who face an estimated €30 increase per policy due to levies imposed to cover these claims.
• The Motor Insurers’ Bureau of Ireland (MIBI), which compensates victims of uninsured drivers, has seen rising claims costs, which ultimately impact premiums across the board.
• Law enforcement struggles to verify insurance status in real-time, allowing some drivers to exploit loopholes in the system.

By introducing a mandatory driver number requirement, Ireland is creating a direct and unique link between drivers and their insurance policies, making it far more difficult for uninsured drivers to operate undetected.

How the New Law Works: A Fundamental Shift in Insurance Verification

What is a Driver Number?

The driver number is a unique identifier assigned to every licensed driver in Ireland. Found in section 4(d) of an Irish driving licence, it remains unchanged throughout a driver’s lifetime, regardless of how many times they renew their licence.

What Will Change for Motorists?

• From March 31, 2025, you will not be able to purchase or renew a motor insurance policy without providing your driver number.
• If you have named drivers on your policy, their driver numbers must also be provided.
• Failure to provide this information means insurers will not be able to issue a policy, effectively barring uninsured drivers from legally obtaining cover.

How This Benefits Insurers and Law Enforcement

• Insurance policies will now be directly linked to an individual driver’s history, preventing fraudulent applications and misrepresentation.
• An Garda Síochána will have improved real-time access to driver insurance data, making roadside checks faster and more accurate.
• The Irish Motor Insurance Database (IMID) will now contain more precise and up-to-date driver data, improving industry-wide analytics and risk assessments.

The Long-Term Impact: A Smarter and Safer Insurance Market

This new regulatory requirement isn’t just about stopping uninsured drivers—it’s about creating a more efficient, fair, and data-driven insurance ecosystem.

1. More Accurate Risk Pricing

With insurers having better access to verified driver information, risk assessments will become more accurate and fair. Instead of relying on incomplete or potentially inaccurate self-reported data, insurers can cross-reference driver numbers with claims history, previous policy lapses, and driving behavior to determine more precise premiums.

2. Reduced Insurance Fraud

Insurance fraud costs the industry millions every year, driving up costs for all policyholders. Ghost brokering, identity fraud, and policy manipulation often involve drivers using false or misleading information to obtain cheaper premiums. With driver numbers now mandatory, insurers can detect fraudulent applications more easily, minimizing risk exposure.

3. Faster and More Efficient Claims Processing

When an accident occurs, having a driver number linked to an insurance policy will significantly speed up claims verification. Instead of lengthy back-and-forth checks, insurers can immediately confirm policy details, leading to faster payouts and reduced administrative costs.

How This Law Aligns with Inaza’s AI-Driven Insurance Solutions

As a leader in AI-powered insurance automation, Inaza is uniquely positioned to help insurers adapt to these changes while unlocking new opportunities for efficiency, fraud prevention, and data-driven underwriting.

1. Automating Compliance with AI

• Inaza’s automated policy validation tools can instantly detect whether a driver number is missing or invalid, ensuring full compliance with the new regulation.
• Real-time data checks allow insurers to seamlessly verify driver identities, minimizing the risk of fraud.

2. Fraud Detection Through Smart Verification

• Inaza’s AI-driven fraud detection technology cross-references driver numbers with historical claims data, accident reports, and third-party sources to identify potential fraud before a policy is issued.
• By reducing premium leakage and false claims, insurers can improve profitability and keep premiums competitive.

3. Enhancing Risk Profiling with AI-Driven Insights

• With driver numbers providing a unique and permanent link to a driver’s insurance history, Inaza’s predictive analytics models can assess risk more accurately than ever before.
• Integration with telematics and behavioral data allows insurers to fine-tune pricing based on real-world driving habits, improving both risk selection and customer satisfaction.

4. Accelerating Claims Processing Through Automation

• When a claim is filed, Inaza’s AI-powered FNOL (First Notice of Loss) system can instantly verify the driver number, policy status, and claim history—massively reducing manual processing time.
• This ensures faster payouts, lower fraud rates, and an improved claims experience for customers.

Final Thoughts: A Pivotal Moment for Irish Insurance

This law is not just about enforcing compliance—it represents a major step forward in creating a safer, more efficient, and more transparent motor insurance landscape. With fewer uninsured drivers, reduced fraud, and more accurate pricing models, both motorists and insurers stand to benefit in the long run.

For insurers, the challenge now is adapting to these regulatory changes while leveraging them as an opportunity for innovation. By embracing AI-driven automation, data enrichment, and real-time fraud detection, insurers can not only comply with the new law but also create a smarter, more competitive business model.

At Inaza, we’re committed to helping insurers navigate this transition effortlessly. Our cutting-edge AI solutions are designed to streamline compliance, enhance fraud detection, and revolutionize risk assessment—all while improving customer experience.

If you’re looking to future-proof your insurance operations, get in touch with us today to see how Inaza can help you turn regulation into opportunity.