Making accurate comparisons between motor insurance costs in Ireland and other European countries is difficult because of variations in the type of insurance cover, age groups, types of vehicles and even regional differences within countries. Most significantly, there are differences in how compensation for personal injuries is paid in these countries.
Countries such as France, Germany, the Netherlands, Denmark and Sweden provide compensation benefits almost exclusively through the medium of social security benefits with a high level of earnings related income support. Ireland, on the other hand, effectively operates two parallel systems of compensation provision, that is, a social security scheme of occupational injury benefits, paid on a flat rate basis with increases for qualified dependants, while allowing unrestricted access to tort liability claims for compensation for loss of earnings and pain and suffering. A similar system operates in the United Kingdom.