Thousands Of Irish Drivers Are Paying Too Much For Car Insurance

Thousands of Households Throughout the Country Paying €100 - €1000+ Over the Odds on Car Insurance

  • Double Savings for the 41% of Irish Households with 2 Cars or More
  • New Insurance Regulations Could Cause Confusion & Cost Motorists Money
  • Loyalty to One Insurance Company Leaves Consumers with Just One Option & Open to ‘Dual Pricing’
  • There is No One Cheapest Insurer

Motor insurance is coming down slowly [1], but drivers will still pay hundreds more than they need to over the next 12 months. This was the contention made by Insuremycars.ie, which has today released details of its Motor Insurance Cost Comparison Analysis 2019, revealing a variation of anywhere from €100 - €400+ in the cost of premiums for just one policy. The motor insurance experts say that of the 82% of households in the country with 1 or more cars, they believe that as many as half of these could be overpaying for car insurance. The online brokers say that thinking there is some sort of ‘Holy Grail’ to finding the one cheapest insurer in the market is a fool’s errand because the approach each insurer takes to driver “risk profiles” varies hugely, as evidenced by the figures, and there’s no way a consumer would be able to figure out the rationale behind it.

Jonathan Hehir, Managing Director of Insuremycars.ie explained,

“Insurers use actuaries, algorithms and a host of other mechanisms to determine pricing. In the wake of much debate around dual pricing, it’s worthwhile pointing out to motorists that figuring out insurer’s pricing systems is nigh on impossible – some insurers favour older drivers, some favour couples, some diesel, some petrol, while others specialise in higher risk. The best, and I would argue only way, to ensure you’re getting a good deal would be to go through a broker.”

Insuremycars.ie say that the processes brokers have in place can combat the dual-pricing issue for drivers by using standardised software at each renewal, which searches the market for the cheapest new business premium.

Mr. Hehir continued,

“At each renewal we put the policyholder’s details through our new business search engine to find the lowest car insurance premium for them for the coming year. If the current insurer offers an inflated renewal price, then we will simply switch cover to an insurer that is offering better value. As a result, our clients would typically be switched across insurers every two to three years - a common practice amongst brokers.”

Insuremycars.ie say that although the latest Consumer Price Index reports that car insurance figures have reduced by 3.2% over the last 12 months, for many motorists throughout the country these reductions are not necessarily being felt across the board.

Mr. Hehir went on to say,

“Motor insurance is one of the most fragmented products out there when it comes to pricing and quotes can vary wildly from person to person, and insurer to insurer. That’s why it’s absolutely imperative that people don’t simply accept the renewal price given by their current insurer. At the very least, motorists should take note of the figures in this CPI report and remember that there are definite savings to be made, especially if they shop the market and speak to experts.

New regulations coming into force in November which require insurers to state last year’s price in addition to this year’s price on the renewal notice may help consumers compare and contrast the cost of their insurance.  But there may be unintended consequences of this new legislation, which is being put in place to create more transparency around insurance quotes, because if a motorist does see a reduction in cost, no matter how small when compared with last year’s premium, they may automatically assume that this is the best deal – when in reality there may be a much greater saving to be made with another insurer.

Motorists need to be mindful that showing loyalty to a specific insurer won’t necessarily equate to a reduction in your premium or securing the best deal.”

Are you looking for a great value, car insurance quote? Call Insuremycars.ie on 01 231 9332 or Click Here to fill out a quick quote form.

 

[1] https://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexseptember2019

 

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