Vol. 520 No. 1
78 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals she has to deal with the problem of insurance for persons under 25 seeking first-time policies; and if she will make a statement on the matter. [15134/00]
The cost of insurance is primarily related to insurance claims experience. The relatively high cost of insurance for young drivers is directly related to their adverse claims experience, as a risk category. The 1996 Deloitte & Touche report on an economic evaluation of insurance costs found that the average cost of an insurance claim for 17 to 24 year old drivers is twice that for the 36 to 40 age group and that motorists in the 17 to 24 age group are responsible for over three and a half times the total average claims costs incurred for motorists in the 36 to 40 age group.
Motor insurance premiums are normally based on underwriting experience including trends in the level, frequency and cost of claims, for particular risks and classes of risk and are a matter of judgment by individual private insurance companies. Any changes in circumstances affecting the risk insured would have to be assessed by the insurer, from an underwriting standpoint. The premium charged and the availability of a quote, will reflect any material increase in the risk.
For those motorists who are having difficulty getting a quote for motor insurance and in recognition of the compulsory nature of third party motor insurance the declined cases agreement between the Minister for Enterprise, Trade and Employment and the Irish Insurance Federation offers the motorist the opportunity of a motor quotation subject to certain criteria.
It is abundantly clear that the primary focus of initiatives, aimed at reducing the cost of motor insurance, must be on reducing the frequency of accidents and the associated cost of claims. The key, therefore, to reducing insurance costs for young drivers is to create appropriate conditions for improving their standards of driving and their appreciation of road safety.
A number of initiatives are in place and are being taken to improve driving standards and safety awareness, amongst all drivers, including young drivers. The Irish Insurance Federation, in conjunction with the Driving Instructors Register, has introduced a scheme of insurance premium discounts, for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the gardaí, continue to promote anti-speeding and anti-drink driving media campaigns, including road safety educational programmes for secondary school students.
