Dáil Éireann Debate, Tuesday - 30 January 2018
147. Deputy Maureen O'Sullivan asked the Minister for Finance if his attention has been drawn to the growing frustration of motorists who, despite the working group on motor insurance, have seen premiums continue to rise, particularly for older persons. [4149/18]
View answerAt the outset, the Deputy should note that it has been brought to my attention that some policyholders, particularly older persons, are continuing to experience increases in their insurance premiums in spite of the fact that prices are generally in decline. My officials have received representations on this topic, while there also have also been a number of Parliamentary Questions tabled.
While, neither I nor the Central Bank can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept, my officials have discussed this matter with Insurance Ireland previously. In response they indicated that they had not discerned a particular trend from their helpline enquiries in relation to this issue.
Insurance Ireland has also pointed out that in making their individual decisions on whether to offer cover and what terms to apply, insurers will aside from a person’s age, use a combination of other rating factors, which include the age and type of the vehicle, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. They have also advised that insurer’s do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, to the above factors, insurance companies will price in accordance with their own past claims experience.
I have asked my officials to follow up again with Insurance Ireland in order to try and get a more detailed perspective on this matter.
Finally, it may be of interest to the Deputy that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance, and one of the key tips listed to help cut costs is to “shop around” and to “always get quotes from several insurance providers when you need to get or renew insurance”. The relevant website address is:
www.ccpc.ie/consumers/money/insurance/car-insurance/.
