Motorists advised to shop around for insurance

CASH-STRAPPED motorists could save hundreds of euro a year on car insurance by researching offers from different companies before deciding on a policy, according to a new price survey.

The National Consumer Agency (NCA) also advised motorists to consider switching provider as a means of saving money, after the survey found considerable cost differences between insurance providers across five separate categories of drivers.

Using the different driver profiles, the NCA also found that penalty points can have a dramatic effect on the potential cost of car insurance.

A 38-year-old male office manager based in Dublin and driving a 2004 model Ford Focus Zetac can expect to pay between €411 and €584 for comprehensive cover, while a woman with the same profile can expect to pay between €375 and €497.

However, a man with the same profile but with six penalty points will not even get a quote for comprehensive cover from five of the eight insurance providers included in the survey, with the remaining three quoting between €504 and €700. For a woman with penalty points no quote is forthcoming with five of the providers and only Quinn Direct sticks with its price of €375, with AXA’s quote rising from €461 to €604 and FBD’s rising slightly from €424 to €446.

Engine size also plays a prominent role in deciding on insurance cost. The average comprehensive cover quote for a 34-year-old, recently unemployed man from Ennis in Co Clare driving a 2L 2005 Volkswagen Golf is €648, while a man fitting the same profile but driving a 1.0L 2003 Opel Corsa will receive an average quote cost of €444 for the same level of cover.

The survey also seems to indicate that living outside of Dublin might not mean lower quotes for cover, with a 33-year-old clothes shop manager in Clones, Co Monaghan, facing a quote of between €485 and €1,211 (male) for fully comprehensive cover, and €519 and €1,097 (female).

While AXA offers the Clones profile third-party fire and theft of €359 (male) and €331 (female), Quinn Direct’s quotes are €618 (male) and €417 (female) — more than it quotes for the same level of cover to the 38-year-old from Dublin with six penalty points.

However, the man or woman living in Ennis received consistently cheaper quotes across the board for cover.

In the highest saving of all the profiles, the Clones resident could secure fully comprehensive cover with AXA for €485 (male) versus €1,211 with ChartisDirect — a difference of €726.

Costs reduce the older the driver, but the survey also shows that a 61-year-old man from Portarlington in Co Laois seeking third-party fire and theft cover would pay €411 with FBD, but €650 with Allianz and €711 with ChartisDirect.

The survey also shows that FBD consistently has the lowest APR% charged for paying by instalment, with Aviva and Quinn Direct charging the highest APR% rates.

Anne Fitzgerald, chief executive of the NCA, said the survey showed the value in motorists shopping around before deciding on a quote.

“Our latest motor insurance cost comparison reveals significant potential savings and backs up the findings of our latest consumer research on switching, which showed that more than 80% of consumers who switched their motor insurance made savings,” she said.

Full price survey available at www.nca.ie