asked the Minister for Industry and Commerce the names of insurance companies willing to give cover to drivers under 25 years of age; the names of companies who apply loadings; and the circumstances in which these loadings are applied.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
8.
While some insurance companies are reluctant to give cover to drivers under 25 years of age, no company refuses cover on the sole grounds of the applicant being under 25 years. All companies apply loadings in all such cases, but some companies apply a higher loading to drivers in the 17-21 years' category than in the 21-25 years' category. This loading is applied because all companies have experienced that this category of drivers has a higher than average number of accidents involving also a higher than average cost per claim.
Is it not true that because of these loadings it is impossible for a driver under 25 to obtain insurance from any of the companies with the exception of one?
It is not impossible. Obviously it is easier to obtain cover from some companies than from others, but it is possible to acquire cover from any company if one is prepared to pay a sufficiently high loading.
Is it not true that the companies were granted an increase of 24 and 25 per cent on the basic rates, on the understanding that they would open up insurance, particularly for the younger driver, and that this has not been honoured by the insurance companies?
I am investigating the general question of the companies adopting a more actively competitive approach to the insurance market, particularly catering for risks such as these. For this purpose I have asked the examiner of procedure and practices to investigate the motor insurance market. I have also asked the Motor Premiums Advisory Council to do a detailed statistical analysis to find out the actual incidences of risk in the case of the different categories of driver. It is hoped that this hard statistical information might indicate to some companies that perhaps the loadings that they are applying to young drivers do not reflect the real risk of insuring such drivers.
Perhaps at a later stage, the Parliamentary Secretary could give me the names of the insurance companies who are willing to accept drivers under 25 years of age?
In theory all companies, to my knowledge, are prepared to accept drivers. The problem is that the loadings are too high. I am prepared to give the Deputy what information I have later on about the loadings applied to drivers in this category by each of the companies.
Will the Parliamentary Secretary give me the names of the companies?
I will give them.
I find that the number of companies who will accept drivers under 25 is very limited.