Drivers who have received five or more penalty points will not be taken on as new customers by Hibernian Insurance from the beginning of next month, writes Dominic Coyle
The company, which is one of the Republic's biggest motor insurers, will surcharge existing customers who have accumulated six or more points.
Hibernian's hardline stance is part of a package that will see drivers without penalty points receive a discount of 10 per cent on their premiums. The company says the discounts will mean an average reduction of between €70 and €100 in the cost of insurance for many motorists. Young drivers, who traditionally pay far higher premiums, could benefit by around €250.
The initiative to reward safe drivers was announced earlier this year following Government pressure for action to lower insurance premiums in response to the introduction of the penalty points system. In exchange for the discounts, the Government will give the insurer access to driver records.
However, it has now emerged that Hibernian will also impose surcharges on customers who have received penalty points. Customers with six points face a 10 per cent "loading" or special increase on their policy premiums upon renewal from November 1st. A further 5 per cent loading will be levied for every subsequent point they receive.
The insurer will offer the discount both to existing and new private customers with no points on their licences. The scheme takes effect from November 1st, and existing customers with renewals due around that date should be receiving letters this week detailing the premiums they face under advance-notice rules recently implemented by the industry.
Up to the end of September 57,000 motorists had received penalty points, with the number rising sharply in the past month.