Insurance initiative for ‘risky’ drivers

A NEW car insurance provider that hits the market today aims to slash premiums for customers that are seen as risky bets by their existing insurers.

XS Direct will target drivers who have recently lost their no-claims bonus and those with high-performance cars who typically pay annual premiums of more than €1,000. The company said its products would also appeal to drivers who were taking out insurance in their own name after being on a company car scheme.

The company’s first product, Excess, allows drivers lower premiums in return for agreeing to a higher policy excess. This type of policy is similar to those on offer in the business and commercial sector and transfers the risk of small claims to the driver. While mainstream policies require drivers to cover the first €150 or €300 of each claim, for example, XS Direct will expect male drivers to bear the first €4,000 of their claim. Female drivers will face a policy excess of €2,000.

“Rather than having high premiums and offering discounts to customers for not claiming, XS Direct has a flat premium structure making it more attractive to drivers paying high premiums,” the company said. “The initial element of a claim is carried by the driver, which allows us offer lower premiums.” Drivers who switch to the company can expect savings of up to 40%.

The company is headed by former executives with leading IFSC-based insurance companies, including former General Re treasury adviser Chris McCann and John Prosser, who previously ran FBD Insurance’s IFSC subsidiary.

It aims to branch out over the next 12 months to offer specialist products aimed at young drivers.