New rules for car insurance to give customers greater transparency

The Central Bank is introducing strict new rules for car insurance from today.

Under the regulations, insurers must tell their customers the premium they paid the previous year, in clear writing, on the same page as their new quote.

From this morning, new rules being introduced by the Central Bank mean that insurers must now provide their customers with more information when renewing their motor insurance policies.

It says it will give greater transparency to customers to help them to make informed decisions when purchasing insurance.

Gráinne McEvoy, Director of Consumer Protection at the Central Bank, says it is about giving customers clarity.

"I think greater transparency is always what a customer is looking for," says Ms McEvoy.

"The ability to make a comparison between what your policy is costing you today versus what it cost you last year is a really important piece of information.

"It allows you a customer to make a more informed decision."

They will also have to give a quote for each policy available, such as comprehensive, third party fire and theft cover, or third party only.

The renewal period is being extended from 15 to 20 days to allow policyholders more time to shop around.

That applies not only to car insurance, but also to health, damage to property and general liability insurance.