THE cost of motor insurance could fall from April if other companies follow the lead of the State's largest motor insurer, Guardian PMPA.
The company, which insures four out of 10 private motorists in Ireland, is to cut rates for many Dublin drivers by up to 10 per cent from April. Drivers living outside Dublin can expect reductions of up to 4 per cent. Guardian will cut premiums for all motorists but Dublin drivers and families will see the biggest savings.
The reductions mean that on average insurance will cost the same in 1996 as it did in 1992. For example, the insurance bill of a 50 year old Dublin man and his spouse with full no claims bonus driving a Ford Mondeo worth £12,500, will fall by £37 to £455 from £492.
A Dublin family with two drivers under 25 driving a Ford Fiesta worth £5,000 will save over £77 on comprehensive insurance. Their insurance bill will fall from £706 to £629.
The cuts are not necessarily the last, but Mr Gerard Healy, chief executive, warned that road safety and drink driving campaigns would have to be stepped up if cuts were to continue.
He said that part of the reason for the cuts is competitive pressure from other insurers.
Other insurers are expected to follow Guardian's cuts. A spokesman for Hibernian Insurance said the company has no plans to adjust rates but would be reviewing that in the first four working days in March.
Despite the cuts, Irish insurance is two to three times as expensive as cover in Britain, thanks mainly to the higher cost of settling claims.
Mr Healy said Irish motorists will not see much cheaper car insurance unless something "fundamental" is done to change the legal system to speed it up and cut down the amount of awards.