Survey shows disparity in motor insurance

A survey released today reveals that customers can save nearly €1,800 by shopping around for their motor insurance.

The study, the fourth undertaken by the Irish Financial Services Regulatory Authority (IFSRA), uses six hypothetical cases to receive quotes from the seven largest car insurers.

No one insurer emerges as the cheapest, with rates for different circumstances fluctuating. The results show marked variations in the quotes offered for various motorists.

For example, a fictional 35-year-old scrap metal dealer from Co Louth driving a 2003 Nissan Vanette Cargo worth €12,500 is quoted €2,913 a year for comprehensive insurance by AXA. FBD offers the same cover for €1,165. Only three of the seven companies surveyed offered a quote for this driver.

The contrast is less marked in other cases. A 62-year-old male clerygman from Dublin, driving a Citroen C5 worth €15,000, is quoted between €900 and €450 for fully comprehensive cover, and between €733 and €360 for third party insurance.

A male Co Kerry Garda inspector in his forties is quoted between €838 and €648 for annual comprehensive cover for his 2004 Audi A4. This same man is quoted between €853 and €395 for third-party cover.

The survey shows cover for women motorists is consistently cheaper than for their male counterparts across the whole range of hypothetical cases.

Quotes for comprehensive cover for a 27-year-old unemployed woman living in Co Carlow with two penalty points on her licence, for example, range between €1,112 and €704 per annum. A male in the exact same circumstances is quoted between €1,489 and €840.

IFSRA's consumer director, Ms Mary O'Dea, said the insurance companies are entitled to refuse cover to anyone, as long as they are not in breach of equality legislation.

However, they must provide applicants for a reason why they are being refused. She advised any motorist who feels they are being discriminated against under this legislation to contact the Equality Authority.

According to IFSRA, the survey shows consumers the cheapest cover may not always be the best cover. For example, when a person has a few years driving experience, they may best served by paying slightly more to protect their no-claims bonus, while for younger drivers, getting the lowest quote may be a priority.

IFSRA has also conducted recent cost surveys on personal loans, credit cards and personal current account charges.