Younger drivers ‘can save €2,800’

Younger drivers can save up to €2,876 on car insurance by shopping around, according to figures from the National Consumer Agency.

The NCA’s latest motor insurance cost comparison also found men paid over a third more than women on motor insurance.

The survey collected information for eight driver profiles across eight insurance firms.

Despite potential savings that can be made by shopping around, 32% of consumers do not bother getting quotes.

The figure for consumers aged 55 years and over is even greater, with 47% saying they do not get quotes.

It found that for the two younger driver profiles, men paid 77% more than women.

The NCA point out that insurance firms will no longer be able to use gender to assess risk for insurance from Dec 21 because of a European Court of Justice ruling.

NCA director of research and policy, Fergal O’Leary, said it was not possible to predict precisely how the market would be affected by the ruling.

“The NCA is calling on the insurance industry to be clear and transparent in their application of the ruling so that consumers can understand its impact,” he said.

Mr O’Leary said consumers should be aware that they could question any premium increase. “We strongly advise them to take advantage of the competition which exists in the market and switch provider if they are unhappy with a quote they receive, both leading up to and after Dec 21.”

He also warned consumers thinking about cancelling a policy now and taking out a new one before the December deadline. “Your current policy will set out any fees you will have to pay if you cancel your policy, which could range from nothing at all, up to €100.”

The survey also found a wide variation in the excesses applied to policies. One insurer had no excess attached to third party, fire and theft policy. The highest excess was €600.

The agency also warned of the cost of paying for car insurance by installments. Insurance companies charge an annual percentage rate (APR) ranging from 16.8% to 20.10%.

* www.nca.ie

2 cases

50-year-old accountant from Montenotte, Cork.

* Driving a 2009 four-door Volvo S40 with no penalty points.

* Comprehensive — Price difference of up to €200 for female and €190 for male between insurers.

* Third-party, fire and theft — difference of up to €198 for female and €22 male.

20-year-old student from Ballina, Co Mayo.

* Driving a 2004 Seat Ibiza, 5-door hatchback.

* Full licence holder for less than a year.

* Comprehensive — price difference of €2,701 for male and €852 for female.

* Third-party, fire and theft — difference of €2,876 for male and €1,172 for female.