After years of escalating car insurance premiums, finally Irish drivers are seeing some relief. With insurance mandatory by law, it was a seller’s paradise but an increase in players in the market and the reigning in of fraudulent claims has helped to push premiums down.
In the last three years premiums have fallen 45% according to the Irish Insurance Federation (IIF). Young males, the most risky group of drivers are getting the best deal with a 56% drop in premiums. “A few years ago it would have been very hard for young men to even get coverage,” Dermot Cullen, a director at O’Reilly Dermot Cullen, told The Times.
In Ireland it is mandatory for drivers to have third party car insurance to pay out if they should hit another car or injure somebody when they are driving. For years Ireland had such high car insurance premiums that many motorists could not afford to drive. The insurance industry cried that they were barely breaking even because of the high frequency of claims, exorbitant legal fees, and the cost of uninsured drivers. In 2003,IIF launched their insurance fraud campaign that seems to have had an impact on the number of fraudulent claims brought forth. In 2004, the Civil Liability and Courts Act began to regulate the out of control personal injury claims. Both of these were significant in allowing the insurers to lower premiums. But these low premiums may be a temporary situation. Axa says, on Times Online, that car insurers are currently only breaking even and may make a loss by the end of the year. At the same time, road fatalities are on the increase in Ireland and that will also push premiums up.
There are things that drivers can do to keep their premiums down. First, don’t have accidents. Second, don’t speed or get in other scrapes with the law. Points on your license affect your premiums. For example, Hiberman offers a 17.5% discount when you renew your policy if your license has no penalty points. Young drivers should, as soon as possible, be included on their parents’ insurance policy as a driver. Building up a safety record will help to keep their premiums down when they need to get their own car insurance. When that time comes they should wait until just after their birthday, the older they are the cheaper their premiums. In most cases, it is better to buy from an authorised broker who will shop around and get you the best bargains. Another great way to knock at least 10% off of your premiums- move to the country. People living in cities or nearby towns from which they commute everyday pay higher car insurance premiums then the country folks.
