Motorists can save €1,700 on insurance

MOTORISTS can save over €1,700 per annum on the cost of car insurance by shopping around between insurance firms, according to the latest survey by the Irish Financial Services Regulatory Authority.

The report highlights premium quotes from the seven main motor insurance companies operating in Ireland for six driver profiles. Although motor insurance premiums generally have fallen in the last two years, the IFSRA survey shows more savings can still be achieved by comparing quotes from a number of different insurers.

In one example, it shows a 20-year-old male student with a provisional licence could save over €1,600 on third party, fire and theft coverage in the difference between the dearest and cheapest quotes. A recent survey by Macra na Feirme claimed provisional drivers were forced to pay out €47m more on car insurance than necessary, due to lengthy waiting times to sit the driving test.

The latest IFSRA survey, which is the fifth in a series on motor insurance costs since December 2003, again shows male drivers pay significantly higher premiums than their female counterparts for most category of motorists. Direct comparisons with previous surveys, however, cannot be made as they obtain quotes for different profiles of drivers.

The latest survey shows how several companies target specific types of drivers by offering the cheapest quotes on the market for that category of motorist. Allianz and Royal & Sun Alliance were the only insurance firms to refuse to issue a quote for drivers with a provisional licence. The survey also details excess levels to be paid by motorists in the event of making a claim against the various insurance providers. It shows policy excesses range from €125-300 between the various insurance firms.

IFSRA consumer director Mary O’Dea said this cost is a factor which drivers should take into account when assessing quotes from different insurers. “Some consumers have difficulty understanding the various policy benefits that different motor insurers offer.” She pointed out the latest IFSRA survey lists the main policy benefits offered by each insurer with a standard insurance policy such as windscreen cover, protected no claims discount, replacement or hire car and recovery service.

Ms O’Dea said consumers should be aware that while there were many savings available for motorists by shopping around, the cheapest policy was not necessarily the best option. “You may be prepared to pay a little more for a policy that includes certain benefits that are important to you. For example, if you have built up a large no claims discount, you may want an insurer that gives the maximum protection for your discount in the event of making a claim.”

Copies of the report are available by phoning LoCall number 1890-777777 or accessing the website: www.itsyourmoney.ie