Motor insurance premiums have finally begun to fall after consumers have been subjected to 3 years of relentless rises. However the majority of motorists have yet to see the benefit and it is worth noting that switching insurers or shopping around may be the best way to cut the cost of your cover. This time last year motor insurance premiums had reached somewhat of a peak, having risen sharply by somewhere in the region of 70% over the course of 3 years.
Around this time last year a major government report was undertaken into the cost of motor insurance premiums and it was recommended that a national claims database be set up, something that is to be set up later this year. The primary objective of this claims database is to identify serial claimants and prevent them driving up premiums as a result of fraudulent claims.
Motor insurance hasn’t been far from the headlines across the country in recent years. Last year the EU Competition Directorate announced that they were investigating the possibility that a cartel may be operating within the insurance industry in Ireland. Evidence suggests that Irish judges may well be reacting more sternly to public anger at the number of personal injury claims arising from motor accidents.
Insurers have also been experiencing public anger over the rising motor insurance premiums. While reports suggest that premiums have begun to fall these reductions have not been experienced across the board, according to Managing Director of Coverinaclick.ie Jonathan Hehir.
“The reduced premiums tend to be on policies insurers have ‘cherry-picked’, for example, where the would-be policy holder has a full no claims bonus, a full licence, no previous claims, no penalty points and a new car” Jonathan stated.
The reality that customers are experiencing can be wholly different Hehir added – “The car insurance market is very fragmented in terms of who pays what, and these reductions are not being and will not be felt across the board”.
Motorists may see a reduction if they are what Hehir described as a ‘squeaky clean’ middle-aged driver, but for other segments of the market, shopping around and switching may be the only way to see a reduction in your policy. What this effectively means is that motorists must ‘scour the market’ now more than ever before. Getting quotes from at least 10 different insurers is paramount to getting the best premium available on the market.
The idea of ringing 10 different insurance companies isn’t particularly appealing. This is exactly where a broker can come in handy, identifying the best type of cover at the best price from multiple insurers. It is also worth remembering that there are 3 main factors when determining your premium.
- The number of years you have been claims free, and license type.
- Your age.
- The type and age of the vehicle.
So there are a number of reasons to go and seek out a better deal on your car insurance. If you have recently acquired a full license, accumulated 5 years or more no claims bonus, recently purchased a new vehicle or want to add or remove a named driver to your policy – Then we would advise shopping around.
For younger drivers who have recently passed their tests, new technologies just entering the market may be a good avenue to go down. Both AIG and AXA have released drivesafe apps offering substantial discounts if your driving is deemed to be safe. While these new apps may be indicative of the future they have not made much of an impact as of yet.
“We have not seen a big impact in insurance premiums due to a lack of availability of this new technology,” he says. “However, further down the road I believe these apps will have a real impact on the insurance market and they will hopefully help to reduce costs for younger drivers”.
Coverinaclick.ie can do the leg work of shopping around for you! Our experienced team of car insurance specialists will do their level best to reduce your premium. Call us today on 01 231 9310 or click hereto get started with your quote.
Source: The Irish Independent