Younger drivers can save €1k on insurance

YOUNGER drivers can save more than €1,000 on car insurance by shopping around, according to figures released by the National Consumer Agency (NCA).

The latest NCA motor insurance cost comparison survey found savings of up to €1,174 for younger student drivers and differences of up to €720 between recently qualified male and female drivers.

The survey collected information relating to seven driver profiles across eight insurance firms.

Four profiles related to drivers in younger age categories — two as lead drivers and two as named drivers.

The remaining profiles captured premium information for a 72-year-old retiree, a 43-year-old family driver and a 31-year-old with limited driving experience.

The survey found that significant savings could be achieved across all driver profiles by shopping around, including for those on a provisional licence.

The lowest quote for a young provisional licence holder was €1,076 (20-year-old female, third party, fire and theft), whilst the most expensive quote in this category was €2,550 (20-year-old male, comprehensive cover).

Where a young, recently qualified driver was added as a named driver on a parent’s policy, the variations between quotes to add a son versus a daughter to a policy were considerable.

The NCA survey found that, in one case, a quote of €1,490 for a father’s comprehensive policy to include his 20-year-old recently qualified son as a named driver was almost double the price for the same cover in respect of his recently qualified 20-year-old daughter as a named driver, at €770, from the same provider.

Savings of up to €887 were found between the cheapest and the most expensive quote for comprehensive cover for a 20-year-old female driver and of €1,174 for a male driver, with a full licence.

The excesses quoted ranged between €200 and €600 for fully comprehensive cover and between no excess and €450 for third party, fire and theft. Two insurance companies have increased their excess amounts compared to the NCA’s last motor insurance survey in May 2010, one by 50% and the other by 100% in respect of comprehensive cover.

Chief executive of the NCA Ann Fitzgerald said the survey again highlighted the value of shopping around for car insurance.

“Yet again, our insurance survey has identified evidence of substantial savings to be made by shopping around for motor insurance quotes. This is even more so younger drivers, who have traditionally attracted higher premium levels but who can still save by checking their options across multiple insurers,” she said.

The survey also enquired about interest rates charged by firms where customers pay their premium in monthly instalments. These range from 16.8% to 23.2% and may therefore have a marked impact on the overall cost to consumers.

* Further information available on www.nca.ie