More than eight in 10 motorists are now opting for comprehensive motor insurance over a third party policy, a year on year increase of over 5%, according to AA Ireland.
An analysis of AA Ireland’s car insurance books found that 81.86% of motorists are now opting for a comprehensive policy, up from 76.25% in 2016.
The analysis found that just 18.11% of AA customers are now opting to take a third party, fire and theft policy compared to 23.74% in 2016.
“While 2016 saw a drop of about 2% in terms of those opting for comprehensive cover, likely as a result of rising premiums, it appears that more and more motorists are now opting for this higher level of cover as the current rate of those opting for a comprehensive policy is the highest seen in the last four years,” Conor Faughnan, AA director of consumer affairs stated.
“While we have no way of knowing what the future holds when it comes to insurance prices, it does appear on the back of this analysis that people feel a little more economically secure than they have in previous years and are, as a result, opting to take out additional cover at a higher rate than seen in the past.”
Despite the rise in demand for comprehensive car insurance cover, the AA is advising motorists who may be trying to lower their premium costs to ensure they are purchasing the correct level of cover to meet their needs.
“In recent months we’ve seen a reduction in the number of young people applying for provisional licenses and a big factor in this is the cost of learning to drive and insurance,” Faughnan added.
“While getting on the road has always been a front loaded cost, with average premiums reducing as you get older and more experienced, for first time drivers a third party policy is likely to be more affordable and suitable to what they require.”