Drivers should shop around for better deal

The survey by the Irish Financial Services Regulatory Authority (IFSRA) of the cost of motor insurance vindicates the charge that motorists are being fleeced by some sectors of the industry.

Published yesterday, it shows that there is something radically wrong by the fact that the cost of motor insurance can vary by an astronomical 500%.

A separate report covering Europe, showed that Irish bank customers are being squeezed by the financial institutions across a range of services, to a much larger extent than their European neighbours.

It is astonishing that in one example, the IFSRA survey discovered that the cost of fully comprehensive insurance stretched from 1,100 to an outlandish 6,000, between two different companies.

The recommendation from the authority’s consumer director, Mary O’Dea, that the consumer could benefit from shopping around, is sound advice but particularly pertinent when dealing with insurance firms. Motor insurance is just one of a number of surveys the authority plans to publish and update on a regular basis, the others being on current account charges, credit cards and other financial products.

Given that the IFSRA is an independent body, its surveys should be of invaluable service to the consumer who would be well-advised to check them, and their website, in the pursuit of the best value for money. In another survey conducted by the European and Irish Central Banks, Irish financial institutions were found to be charging a third more than the European average for overdraughts and credit cards. The Central Banks also found that, while the consumer fares slightly better on mortgages, all Irish banks pay lower interest than their European counterparts on all forms of deposit accounts.