Insurers must cut costs to get details on errant drivers
Transport Minister Séamus Brennan will refuse to give insurers a register of offenders until he gets a guarantee that costly premiums will fall for safe drivers. Insurance companies want details of repeat offenders in the new penalty points system that begins today.
“The minister would be very anxious that there is something in this for drivers who abide by the law. He will meet with companies in the next few weeks to discuss this,” a spokesperson said.
However, insurance companies insisted last night that premiums will only decrease when they can identify
errant drivers.
“There will have to be a mechanism in place that will allow us see who the offenders are. Costs could go down for about 80% of motorists if this happens,” Hibernian Insurance marketing manager, Ciarán Mahon said.
Insurance companies claim they will have to rely on motorists disclosing their offences if the Department of Transport doesn’t co-operate. The Tánaiste, Mary Harney, will also put pressure on insurance companies to reduce premiums for drivers who avoid picking up penalty points.
Given that insurers’ costs are set to fall by 31% under the programme, the Tánaiste is adamant that drivers’ premiums should fall.
“The Tánaiste wants a quid pro quo for consumers. As head of the ministerial committee overseeing the programme, she will try to ensure this happens,” a Trade and Enterprise Department spokesperson said.
Any driver who picks up penalty points for speeding will have their annual insurance bill increased by 25%, or 250 on the average premium. Two speeding offences will see a driver’s insurance rise by 50%.
But the country’s leading insurers, such as AXA and Hibernian, have no immediate plans to cut costs for safe drivers.
John O’Neill, chief executive of AXAl, which insures 400,000 drivers, said premiums for safe drivers will fall in time, but he could not say when.
The failure to compensate non-offending motorists immediately was criticised by the Consumers’ Association of Ireland (CAI) last night.
“There must be immediate measures to benefit safe drivers. Otherwise it seems that insurers are looking for any excuse to increase premiums,” CAI chairman Michael Kilcoyne said.
