Call to reduce motor insurance costs

louie · 31-10-2007 2:50pm #1

National Youth Council of Ireland has accused motor insurers of robbing young drivers by charging them exorbitant prices for motor insurance.

Hope they are going to do something about it.

Call to reduce motors insurance costs

Anan1 · 31-10-2007 3:36pm

Enough with the conspiracy theories, lads. If there was money to be made by giving you cheaper insurance then you can bet the market would be doing so.:)

louie · 31-10-2007 3:41pm

I think they make enough money from this, and oh YES they can drop the prices and still make nice profits, but nobody stops them to do so.

Guy:Incognito · 31-10-2007 3:47pm

If you owned a business would you charge less than you could out of the goodness of your heart?

Either way, all young drivers have to do is stop doing so much damage with their cars so that the stats drop and the Insurance companies have no choice but to reduce premiums. If 40-60 year old women were costing the most in claims they'd be paying the most, but as it is young drivers are statisticlly the costliest to insure.

Before you whinge about older drivers getting on the case of young drivers, I'm only 26 and have worked my way up (down?:)) the huge premium ladder. I started off paying £2900 irish in 200 on a 1.2 Clio.

Anan1 · 31-10-2007 3:47pm

louie wrote: »

I think they make enough money from this, and oh YES they can drop the prices and still make nice profits,

Do you have any evidence to back this up?

louie wrote: »

but nobody stops them to do so.

Why should they? These are private companies operating in a free market.

Stark · 31-10-2007 3:48pm

I wonder if the €4k they're complaining about is for a provsional license in their own name or as a named driver. If it's in their own name, they should be thankful they can be insured to drive illegally at all. If it's named driver quote, then those quotes are pretty apalling, but I think most of that is down to people getting put down as a named driver on "Mammy's Punto" and then driving it 24/7 as if they were the sole driver. Hopefully if the Gardaí start enforcing the provisional driver laws, those quotes should come down a good bit for people trying to sort out the learning to drive thing for themselves.

parliament · 31-10-2007 3:58pm

Anan1 wrote: »

Do you have any evidence to back this up?

Why should they? These are private companies operating in a free market.

Because insurance is required by law there is an obligation to keep costs reasonable.

Also calling for reduced costs at the same time as moaning about being told you need full license to drive unsupervised...sheesh some people want their cake and to eat it too!

astraboy · 31-10-2007 4:01pm

Fact is its hardly a free market, there are far few insurance companies in the Irish market to ensure decent competition. Young drivers are a higher risk but the prices we still pay are over the odds in comparison to over the water in the UK.

Stark · 31-10-2007 4:02pm

parliament wrote: »

Because insurance is required by law there is an obligation to keep costs reasonable.

But you're not required to drive by law.

parliament wrote: »

Also calling for reduced costs at the same time as moaning about being told you need full license to drive unsupervised...sheesh some people want their cake and to eat it too!

QFT

astraboy wrote: »

Fact is its hardly a free market, there are far few insurance companies in the Irish market to ensure decent competition. Young drivers are a higher risk but the prices we still pay are over the odds in comparison to over the water in the UK.

Insurance costs in the UK aren't that cheap anymore. In fact, in a lot of cases, the same category people in Ireland are able to get cheaper insurance over here. Young provisional license holders still pay way over the odds compared to the UK, but over in the UK they don't get let off the leash until they pass their tests so therefore they're far less of a risk.

louie · 31-10-2007 4:03pm

Anan1 wrote: »

Do you have any evidence to back this up?

http://archives.tcm.ie/irishexaminer/2005/03/08/story345686832.asp

and that for 2005 (2 years ago)

and BTW, I am not worried about my insurance cost after 11 year no claims bonus, and no always the young drivers are to be blamed for just because it is easier to point your finger at them.

Anan1 · 31-10-2007 4:05pm

parliament wrote: »

Because insurance is required by law there is an obligation to keep costs reasonable.

An obligation on who? I was always under the impression that insurance costs were driven by claims.

Stark · 31-10-2007 4:07pm

louie wrote: »

http://archives.tcm.ie/irishexaminer/2005/03/08/story345686832.asp

and that for 2005 (2 years ago)

Quinn group are a pack of gangsters though. Their premiums are great and all, but I've heard quite a few stories about their claims process.

Anan1 · 31-10-2007 4:07pm

louie wrote: »

http://archives.tcm.ie/irishexaminer/2005/03/08/story345686832.asp

and that for 2005 (2 years ago)

Have you actually read the article? It doesn't even mention young drivers!

Triangle · 31-10-2007 4:13pm

You can't really compare prices here to accross the water.

They have a large population that help reduce the price and on top of that we have a higher accident ratio.

The insurance companies have to make a profit - if they don't then how can they stand in front of their shareholders and say - give me your money and i'll make a 1% loss on it Vs putting your money in the bank and getting 3.5+% on it.

Also, if a 25 year old cripples himself then theres a higher loss of earnings than if a 50 year cripples themselves. Hence alot more risk on young drivers!!

To sum up - it's not a conspiracy - its the fact of things - young drivers are less carefull then older drivers (Generally!!!!) and have a higher claims cost (Generally!!)

louie · 31-10-2007 4:14pm

to Anan1: do you own an insurance company?

there is a more recent article, and BTW, it's about profits made not about young drivers:

http://archives.tcm.ie/irishexaminer/2007/08/09/story39431.asp

to answer your question above.

Mitch Connor · 31-10-2007 4:15pm

While insurance isn't cheap, it is getting cheaper.

My brother piad something like £3000 to get insured on an old small engined Seat Ibiza when he started driving. When I started driving in june last year, in a 1.5L Mazda 323f, i paid €2200

Anan1 · 31-10-2007 4:44pm

louie wrote: »

to Anan1: do you own an insurance company?

Yes, louie, I do. How did you guess?

louie wrote: »

here is a more recent article, and BTW, it's about profits made not about young drivers:

http://archives.tcm.ie/irishexaminer/2007/08/09/story39431.asp

to answer your question above.

If it's not about young drivers then why are you quoting it?

astraboy · 31-10-2007 7:20pm

Stark wrote: »

But you're not required to drive by law.

QFT

Insurance costs in the UK aren't that cheap anymore. In fact, in a lot of cases, the same category people in Ireland are able to get cheaper insurance over here. Young provisional license holders still pay way over the odds compared to the UK, but over in the UK they don't get let off the leash until they pass their tests so therefore they're far less of a risk.

Ya I agree about the provisional thing, but a lot of insurance companies balk at the thought of anyone under 30 driving a 'performance' car. They have improved though, my insurance is under a grand now. Handy bit of paper that in the windscreen....:p

mick.fr · 31-10-2007 7:24pm

Wait a bit more and prices will get down, the car insurance has already started in the last months. Prices are getting down.
Remember 2-3 years ago with the Internet Service Providers? Now you can get good deals and a good speed.
It is not about technology, it is about the number of competitors in the market :-)

UK, a lot cheaper, but there are a lot more insurance companies that in Ireland, and a lot more drivers.

Call to reduce motor insurance costs

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