How to fight back against rising motor premiums (Irish Independent)

04 November 2011
The cost of private motor premiums has shot up by 13.4pc in the past year, according to the Central Statistics Office.

Strange that, given that claims costs have gone the other way. Take, for example, road fatalities, which are a huge determinant when it comes to insurance costs.

Figures obtained by 'Your Money' show that road fatalities in the six months to June are down to 127. This compares with 141 deaths for the same six-month period a year ago.

In the first half of 2007 there were 164 deaths from road accidents. A massive improvement has been achieved when it comes to the road fatalities toll, thanks largely to the efforts of the Road Safety Authority and greater enforcement by gardai.

Also down is the number of collisions. In the first half of this year there were 117 collisions, 10 fewer than during the same period last year.


The operation of the Injuries Board has delivered around €100m savings in the cost of settling claims.

What all of this points to is outrageous price gouging on the part of insurers.

Given this, consumers would be well-advised not to accept any insurance renewal quote they receive.

Grab the phone book and the phone and start ringing around. If you have an internet link it is easier to seek out quotes. Particularly useful are online comparison sites like 123.ie, insure.ie and uchoose.ie.

Do not stop until you have at least six quotes. Then go back to your original insurer and ask it to match or improve on your best quote. If your original insurer will not match your best quote then take your business to the firm offering the best deal.

Regular surveys carried out by the Financial Regulator show that drivers nationwide can potentially save between €200 and €1,800 on their motor insurance if they shop around.

Also worth doing is paying your premium in one lump sum if possible, otherwise you will be changed interest of as much as 17.4pc for paying your premium in instalments.

Another way to slash that premium is to voluntarily increase your excess (the amount you will pay should you need to claim).

It is important that you do not overestimate the value of your car.

Remember that if you have a claim, your insurer will only pay out what it considers to be the market value of the car at the time of the loss.