asked the Minister for Industry and Commerce if he has any proposals to ensure that car insurance is available at competitive realistic rates to young drivers; and if he will make a statement on the matter.
Written Answers. - Motor Insurance for Young Drivers.
20.
Limerick East): I outlined in some detail in the House recently the reasons why young drivers are charged more for third party motor insurance. Young drivers incur loadings to reflect their higher risk status. Furthermore such drivers are usually not in a position to benefit from no claims bonuses which older drivers will have earned.
The higher accident rate for young drivers is well documented in the An Foras Forbartha road accident reports. In addition examination in the past of the loadings applied by insurers to these drivers have shown these to be justified. I have however asked for the position on loadings in general to be monitored by the Motor Insurance Advisory Board which I set up last year. I am anxious that any type of loadings not reasonably justified on cost grounds should be done away with.
I am anxious too to improve the position of young drivers, but I have to say clearly that the pool of premium income overall must match the level of claims. The simple fact is that lower insurance costs for young drivers with no change in the underlying claims experience would mean higher costs for other, more mature, drivers. This should not be lost sight of.
If the Deputy has any particular cases in mind involving young drivers I will be glad to have the details checked out by my Department.