Young drivers paying 50% more for car insurance

A study carried out by an insurance brokers specialising in young-drivers has found that the rates being offered to young drivers by insurance companies, particularly to those with low levels of experience, have increased by an average of over 50% since this 2014 and up to 90% in some cases.

Experts at www.coverinaclick.ie say that typical zero-experience starter premiums were €2,000-€2,500, but €3,500-€4,000 is now becoming all too common for a 12 month policy – particularly from Irish-based Insurers.

“There’s much talk about 15-20% increases for motor insurance, but young drivers are being hit particularly hard as more insurers pull back from this sector of the market,” said According to Jonathan Hehir, Managing Director at www.coverinclick.ie.

“Premiums are facing ‘upward only’ increases so motorists need to minimise these increases where and when possible. Motorists dealing with brokers that have access bigger UK/ London insurers will fare better when it comes to rates as Irish based insurers continue in their attempts to recover losses. There’s a subtle but quickening trend in the market now to place business with UK based insurers such as Lloyds, because Irish-based insurers simply cannot offer competitive rates at the moment,” he said.

The insurance brokers say that new young drivers are definitely faring worse than those who have already had insurance in place for the last few years.

“While we’re seeing huge increases in premiums for starter drivers, it isn’t as evident for our existing clients who are facing renewal – for a number of reasons – firstly, by the time they get to their first renewal their additional driving experience will help to mitigate the increase.

“In addition, anyone hit with a hugely increased premium is automatically re-broked to our London based Lloyds insurers who aren’t carrying the losses of the Irish insurers, and are offering far better terms.

“By way of advice to consumers I would really just stress the importance of shopping around. There is still good value to be achieved in the marketplace you just need to do your homework – or get an expert to do it for you,” he said.

Coverinaclick.ie say there are a few measures you can take to reduce your motor insurance bill

• Check the differences between third party fire and theft and comprehensive it might not be financially sound to pay the difference depending on the value of the vehicle. Only pay for the cover you require – if your car is a banger, there’s little point in having comprehensive cover
• Additional security features can make a difference so make sure you tell your broker if you have an alarm, immobilizer or if your car is kept in a garage – it all adds up.
• Ask your insurance company if you are eligible for a discount if you have more than one policy with their company. You may find the more policies you have with them, the more money you save.
• If you’re at the position where you’re buying a car – consider engine size – this will invariably effect your insurance premiums
• Try adding a driver to your policy – for example in a lot of cases the insured and spouse/partner rate is lower the insured only.