Savings of €1,250 by shopping around for car insurance

Some people could knock as much as €1,250 off their annual car insurance premiums just by shopping around, according to a new survey from the Competition and Consumer Protection Commission.

The survey also highlighted the financial consequences of penalty points with the cost of premiums potentially rising by almost half for those on two points earning four more.

While the potential savings vary depending on the level of cover required and an individual’s circumstances, the study finds the cost of comprehensive cover can differ between providers by up to €1,249. For third party fire and theft, the difference in quotes was up to €975.

Using nine different driver profiles varying in age, location, driver experience and other lifestyle factors, the commission compared motor insurance quotes from eight providers. It said potential savings were seen across all of the profiles surveyed. A 67-year-old, driving a Ford Fiesta in Dublin could save over €170 by switching from the most expensive to the cheapest provider.

Quoted

A 47-year-old physiotherapist from Trim, Co Meath driving a 2011 Toyota Avensis who is seeking cover for themselves and their 19-year-old child with a novice driving licence was able to make the biggest savings by shopping around.

Aviva quoted this profile an annual premium of €3,179 for a comprehensive policy while FBD quoted €1,928. Several companies were not prepared to offer any quote. It was not specified if the drivers were male or female.

The expense faced by drivers who amass high numbers of penalty points was also laid bare.

Only two of the eight insurers surveyed provided a quote for a driver with six points. In one instance the cost of comprehensive cover for a driver with two points rose by 37 per cent when they had accrued six points. The cost of third party fire and theft cover jumped by 49 per cent for the same driver.

The survey also revealed the variation in benefits offered and the range of excesses included in policies. The excess – the amount which a consumer will have to pay in the event of a claim – for comprehensive policies ranged from €200 to €550. For third party fire and theft policies, the excesses varied between zero and €500.

The survey also showed how expensive it can be to pay a policy by instalments.

Seven of the eight insurers who participated in the survey allowed consumers pay for motor insurance by instalments, with the charge ranging from 9.5 per cent to 20.1 per cent of the total premium.