Dáil Éireann debate -
Tuesday, 28 May 1996

Vol. 466 No. 1

Written Answers. - Motor Insurance Reductions.

Michael P. Kitt

Question:

201 Mr. M. Kitt asked the Minister for Enterprise and Employment if his attention has been drawn to comments contained in the magazine, Insurance Update, regarding reductions in motor car insurance; the companies, if any, that have reduced rates; and the plans, if any, he has to assist young drivers get motor insurance at reasonable rates. [10752/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

My Department is aware of the downward trend in the Central Statistics Office price index for motor insurance which is the subject of comment in the publication to which the Deputy refers.

This downward price trend is a positive indication of improved market conditions and underwriting performance in motor insurance. To date, two companies, — Guardian PMPA and Premier Direct — have announced appreciable reductions in motor insurance premium rates.

Motor insurance premiums for young drivers remain at a high level relative to other categories of insured drivers, reflecting insurers' experience of the young driver as a high risk category. Safer driving, leading to reduced frequency and cost of claims, is the key to reducing premiums for young drivers and the report of the insurance cost consultancy study which the Minister of State with responsibility for commerce, science and technology has commissioned will include recommendations aimed at improving the safety standards and performance of young drivers.