Car insurance cuts for young (The Irish Times)
A report published today found that young people have had a substantial reduction in motor insurance costs between 2001 and 2007 and that more of them are taking out car insurance.
Review of motor insurance premiums for young personswas commissioned in September 2007 by the Department of Transport to examine whether or not young drivers have benefited as much as other age groups from the general reduction since 2004 in motor insurance premiums.
If found that the average price paid for insurance decreased between 2002-2005 by 19 per cent below the 2000 level, with those in the 17-24 age group enjoying the biggest falls.
Moreover, the number of persons in that age bracket taking out car insurance rose by 63 per cent between 2003 and 2005, despite there being a net decrease in the population of this age group during that period, the report found.
Today, young drivers are more likely to buy more expensive, comprehensive motor insurance, the review added.
Between 2000 and 2005, the average claims cost per policy dropped by 55 per cent, it noted, but between 2003 and 2005 the claims cost per policy reduced by only a small amount (9 per cent on average), with no change in claims costs for policyholders aged 20 years and under.
In terms of calculating premium, insurers use the same risk-based method for young persons as for other age groups, according to the survey.