Vol. 470 No. 4
23 Mr. Callely asked the Minister for Enterprise and Employment if his attention has been drawn to the enormous cost of motor insurance for young and learner drivers when they can obtain cover; the proposals, if any, he has to ensure that motor insurance will be available at competitive and realistic rates; and if he will make a statement on the matter. [19120/96]
I have spoken on numerous occasions to the House in regard to the position of young and inexperienced drivers as a high risk category. The established facts in this regard which I have previously detailed in response to similar questions are as follows.
The most recent statistics published by the National Roads Authority show that: (a) almost 38 per cent of the motorists involved in fatal and personal injury accidents were young drivers and that (b) 41 per cent of the road casualty victims in 1995 were between the ages of 18 and 34. The analysis provided by the sixth report of the Motor Insurance Advisory Board showed that claims frequency declines with age of policyholder for all types of cover. The analysis also showed that, in terms of relative claims cost, the 17 to 24 year old policyholder is a greater risk than those aged 25 to 30, who in turn are a greater risk than those aged over 30.
The Deloitte and Touche report on an evaluation of insurance costs in Ireland provides further evidence of the high cost of claims associated with the young driver. The consultants found that the average cost of an insurance claim for a 17 to 24 year old driver is over twice that for a 36 to 40 year old driver and that motorists in the younger age group are responsible for over 3½ times the claims costs of motorists in the 36 to 40 age group. Given the facts, it is not surprising that young drivers may experience difficulty in obtaining quotations for motor insurance and that from an underwriting and solvency perspective insurers will quote relatively high premiums to young and inexperienced drivers.
