Shopping around could cut car insurance by 50%

MOTORISTS may be paying up to 50% more on their insurance premiums by not shopping around for a cheaper quote.

A survey by the Irish Financial Services Regulatory Authority (IFSRA) found drivers could save between 30% and 50% on average by ringing different providers and asking for a quote.

For example, a 56-year-old driving a 2001 Toyota Avensis received a quote of €735 from Axa for comprehensive insurance. However, the quote was just €452 from Royal & Sun Alliance a 38% difference. For a 19-year-old student driving a 1999 Opel Corsa, the cost of insurance varied from €343 at Quinn Direct to €480 at Allianz.

A 27-year-old man from Sligo was quoted €1,559 from Allianz for insurance on his 1995 Volkswagen Golf, while Quinn Direct offered to insure him for just €945.

In some cases, the savings were even higher.

"Although the process does take a little time, It is clear from the survey that you can have more money in your pocket by taking a little time to look at all of your options. The difference between one quote and another can be very significant," IFSRA consumer director Mary O'Dea said yesterday.

But Michael Horan of the Irish Insurance Federation said the survey was good news for consumers as it showed premiums were falling.

On the wide disparity in prices, Mr Horan said each company would have a different level of claims and this was reflected in the prices quoted to motorists a higher number of claims to a particular insurer will result in higher premiums.

The warning on insurance prices came as Tánaiste Mary Harney announced a new initiative to end the "horror stories of rip-off Ireland" and beef up consumer rights.

Ms Harney has set up a strategy group to formulate a national policy to ensure consumers are aware of their rights. It will make recommendations on legislation and conduct surveys to see if people are getting a fair deal.

"Competition will only succeed with the co-operation of consumers. I want to encourage a culture where consumers are confident and insistent in demanding value and quality at all times," Ms Harney said.