500% difference between quotes!

mike65 · 10-12-2003 7:02pm #1

from onbusiness.ie

On motor insurance, IFSRA profiles eight different consumers across a range of ages and professions based on several car types. It lists eight insurance companies and finds in some cases that quotes can vary by almost 500%. For example, a quote for a 25 year old male barworker in Galway, driving a 1998 Honda Civic, came in at just over €1,100 with AIG but over €6,000 euro with Royal & Sun Alliance.

Anyone here with Royal & Sun Alliance?

Mike.

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Turner · 10-12-2003 7:09pm

Who is AIG and how do we contact them ??

Villain · 10-12-2003 7:09pm

http://www.ifsra.ie/frame_main.asp?pg=%2Fconsumer%2Fcr%5Fintr%2Easp&nv=%2Fconsumer%2Fcr%5Fnav%2Easp

Theres a link there to the survey makes for some intertesting reading indeed!!!

And guess what

"However, the Irish Insurance Federation has been defending the variation in the costs of motor insurance.

Michael Kemp said that different companies face varied costs and expenses."

Villain · 10-12-2003 7:17pm

Originally posted by Chief---
Who is AIG and how do we contact them ??

There an american insurance company, do a google and you'l find there site.

INSURE.ie in my experience is the cheapest out there

mike65 · 10-12-2003 7:27pm

Heres the file link - http://www.ifsra.ie/data/cr_pub_files/Motor%20Insurance%20Cost%20Survey.pdf

Just read it - AIG is your only man (in most cases, they won't touch the young) you will have to go through a broker to use them however.

Mike.

gurramok · 11-12-2003 12:15am

Which broker ?
Google dont return much info on them in motor insurance field.

Whats their age limit ? How old do you have to be before they consider you ?

John R · 11-12-2003 2:43am

Originally posted by gurramok
Which broker ?
Google dont return much info on them in motor insurance field.

Whats their age limit ? How old do you have to be before they consider you ?

the AA quote them.

Merrion · 11-12-2003 5:10pm

It's not comparing like with like, unfortunately.

AIG do mainly fleet / group / various other restriction type business which work out at less risk so less cost. The journalist needs to do a bit more research.

Villain · 11-12-2003 5:34pm

It wasn't a journalist it was the IFSRA that done the survey, and I think it was done very well.

AIG Quoted the 25 year old, he's not really a member of a restriction group, and all Insurance companies have restrictions.

Merrion · 11-12-2003 5:45pm

It's kind of like comparing a clearing bank and a high street bank. The AIG rate is the rate given to a broker whereas (most of) the others are retail insurers.

So the AIG rate is net of broker commission and only covers windscreen damage and other vehicle cover. The broker will add value (free hire car when you break down, no claims bonus protection, breakdown) and will add cost as well...and the broker pays for advertising, offices, claims and premium entry staff and loss adjusters out of the difference.

Villain · 11-12-2003 6:03pm

Originally posted by Merrion
It's kind of like comparing a clearing bank and a high street bank. The AIG rate is the rate given to a broker whereas (most of) the others are retail insurers.

So the AIG rate is net of broker commission and only covers windscreen damage and other vehicle cover. The broker will add value (free hire car when you break down, no claims bonus protection, breakdown) and will add cost as well...and the broker pays for advertising, offices, claims and premium entry staff and loss adjusters out of the difference.

And is it not compared to simalar rates from other companies?

I'm asking because I don't know by the way. I just pointing out that it wasn't a Journalist that done the survey, but well respected body.:)

Merrion · 11-12-2003 7:01pm

Effectively a punter on the telephone will not be able to get the AIG rate even if they match all the criteria because you can only buy this policy through a broker and all brokers charge commission.

It does highlight the issue of transparency in the pricing i.e how much of the customer cost is due to which component in the package. The breakdown should really be part of the policy quote IMO.

Atomic Pineapple · 13-12-2003 8:39pm

"We are sorry but no insurers were prepared to quote on-line based on the details you have supplied" - insure.ie

We are sorry but no insurers were prepared to quote on-line based on the details you have supplied. - brittoninsurance.com

Unfortunately a quote cannot be issued at this time. This could be for a number of reasons - quinn-direct.com

grrrrr...

Brand new Focus 1.4 zetec
20 male full irish license. no penalty points or anything

why so hard to get quoted?

daveirl · 13-12-2003 10:02pm

This post has been deleted.

Victor · 13-12-2003 11:36pm

Originally posted by daveirl
Doesn't this torpedo all the crap MIJAG spew out. If there is a cartel, then it's not a very good one, if there is a 500% price difference.

The problem would appear to be that the lower rates aren't generally available and / or there is an excessive barrier (insurers and brokers) between the underwriters and consumers.

Merrion · 07-01-2004 12:55pm

I'm told that the AA act as brokers on that AIG thing and their broker commission is well below industry average so suggest you give them a call.

Victor · 07-01-2004 6:36pm

Originally posted by Merrion
I'm told that the AA act as brokers on that AIG thing and their broker commission is well below industry average so suggest you give them a call.

I noticed that in their annual report that the IIF fudged the issue of brokers fees for motor insurance, but included it for every other class of insurance.

Villain · 07-01-2004 6:44pm

AA won't quote you unless you have 3 years no claims bonus in your own name!

Guy:Incognito · 08-01-2004 1:20am

Insure.ie

INSURER PREMIUM BUY BENEFITS
Hibernian Broker Motorchoice 1,980.56 Buy Benefits
Hibernian Broker Motorchoice Plus 2,039.98 Buy Benefits
Royal & Sun Alliance - Select 3,728.10 Buy Benefits
Royal & Sun Alliance - Car 4,007.94 Buy Benefits

Brittoninsurance.ie

INSURER PREMIUM BUY NOTES BENEFITS
Hibernian Broker Motorchoice 2,475.70 1,949.77 Buy Notes Hints
Hibernian Broker Motorchoice Plus 2,549.97 2,008.26 Buy Notes Hints
Royal & Sun Alliance - Select 3,728.10 2,936.12 Buy Notes Hints
Royal & Sun Alliance - Car 4,007.94 3,156.51 Buy Notes Hints

SAme companies, same details, got quotes bout 5 mins apart

Our man in Havana · 11-01-2004 4:07am

Originally posted by irish1
AA won't quote you unless you have 3 years no claims bonus in your own name!

It is an offense not to quote. How are the likes of these getting away with it?

500% difference between quotes!

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