Motor insurance premiums can vary by up to 58 per cent

Drivers can save up to 58 per cent on their motor insurance by shopping around for cover, the third cost survey of the market by the Irish Financial Services Regulatory Authority (IFSRA) shows.

The comprehensive motor insurance premiums quoted by insurers for sample drivers indicate that some motorists will pay more than twice as much for cover if they opt for the most expensive insurer rather than the cheapest.

The regulator found that the differences in premiums quoted by seven insurers for six sample consumers across a range of ages, professions, cars and licence types varied from €74 to a massive €1,831.

For example, a 31-year-old male administrator who drives a 1998 VW Golf, lives in Galway and has had a full licence for seven years was quoted annual comprehensive cover for €1,108 through Royal & Sun Alliance, but just €533 from FBD.

The average price difference between the highest and lowest quotes in each category was €503.

Three insurers - Allianz, Hibernian and Royal & Sun Alliance - refused to quote a 28-year-old economist from Dublin who was on his or her second provisional licence. The lowest comprehensive cover quotes on offer in this category were €2,645 for a male driver (from FBD) and €1,969 for a female driver (from Quinn Direct).

For the first time, the IFSRA cost survey examined the impact penalty points can have on the price and availability of cover.

Hibernian, Royal & Sun and Eagle Star refused to quote a 52-year-old driver with six points on his or her licence.

If motorists with points find it difficult to source insurance quotes, they may be forced to accept any loading automatically imposed by their existing insurer.

Almost all the insurance companies who took part in the cost survey told IFSRA that they were keeping their policies on penalty points under review, the consumer director, Ms Mary O'Dea, said yesterday.

Hibernian is the only insurer to formally link premiums to the number of penalty points, offering a 10 per cent reduction to drivers with no points.

Axa, meanwhile, increases premiums according to the nature of the offence rather than the number of penalty points. A conviction for dangerous driving will lead to an automatic loading.

The 52-year-old driver with six penalty points, who drives a 2002 Audi 1.8 Estate worth €32,000, lives in Kilkenny and has annual mileage of 12,000, was still quoted far cheaper insurance than the 28-year-old economist who is on his or her second provisional licence but has no points.

Some insurers also quoted higher premiums for the 31-year-old administrator with a clear record on their seven-year full licence than they did for the driver with six penalty points.

IFSRA reminds consumers that insurers who refuse to quote must provide a reason if asked.

Drivers who have sought and been refused quotes in writing from three insurers or more are entitled to go to the Declined Cases Committee operated by the Irish Insurance Federation, who will then source an insurance quote on their behalf.

IFSRA's original motor insurance survey, published in December 2003, found more dramatic differences in prices, with premiums varying up to 500 per cent for some younger drivers.

All three motor insurance surveys are available to download on www.itsyourmoney.ie.

Copies are also available from IFSRA's consumer information centre at College Green in Dublin or by calling its consumer helpline on 1890 777 777.