Drivers urged to shop for better insurance deal

MOTORISTS who don't shop around for insurance can end up paying five times too much for cover.

Huge price differences were revealed in a survey published yesterday by the Irish Financial Services Regulatory Authority (IFSRA).

The financial watchdog also published a survey on personal current account charges.

IFSRA consumer director Mary O'Dea said the surveys were to help the consumer make better choices based on independent information.

"I think it is clear from the survey that you can have money in your pocket by taking a little time to look at all your options," she said. Eight consumer car categories across a range of ages and professions based on several car types are covered in the survey.

For a 25-year-old male bar worker in Galway, driving a 1998 Honda Civic, one quote came in at just over 1,100 with AIG but was 6,200 with Royal & Sun Alliance, while Allianz quoted 5,092.

Another example took a 22-year- old nurse, male and female, driving a Renault Clio worth 3,200.

In the case of the male, the highest quote was 7,486 from Allianz, while the lowest was Axa at 3,707.

For the female nurse, the quotes showed a huge variation. The best quote was Eagle Star at 2,066, with Allianz by far the highest at 3,419. Each nurse held a provisional licence, did 10,000 miles and cover was for the individual only.

Mike Kemp of the Insurance Federation says each company is entitled to set its own rates, and that the claims' experience and cost base of each firm determines the cost of car cover. Price differentials showed there were no cartels in operation, he said. However, Fine Gael spokesman on Enterprise Trade and Employment, Phil Hogan, said: "this survey demonstrates that insurance companies are not passing on reduced costs in the form of lower premiums to customers."

The financial watchdog has also published a comparative table for current account charges. It plans to update these surveys every six months. It is also preparing a new survey on credit cards.

Ms O'Dea said complaints about banks focused on inadequate handling of complaints rather than major concerns about bank charges.