PREMIER Direct Insurance, the motor insurance subsidiary of the Bank of Ireland group, is to cut a range of its car insurance rates.

Motorists in the Dublin area will benefit most under its new, pricing structure, which follows a similar move by the State's largest motor insurance group, Guardian/PMPA, earlier this week.

Yesterday, Premier announced that annual motor insurance premiums for some Dublin motorists will fall by up to 14 per cent. Savings for motorists living outside the Dublin area will be much smaller, with their premiums expected to fall by, at most, 6 per cent.

Premier's new, lower premiums will be available to new customers immediately and to existing customers as their policies come up for renewal.

The group intends to announce further improvements in the price of motor insurance for female drivers from March 1st. The new rates could mean annual savings of around £30 for some motorists.

Price cuts announced by Guardian/PMPA aim to reduce premiums for some Dublin motorists by up to 10 per cent. Other insurers are expected to join in the latest, round of price cuts.

With Premier, a male motorist, aged 55 and living in Dublin, drives a 1996 Ford Mondeo (valued at £15,000) for instance will be quoted £345.48, a saving of £26.52 on its existing rate, according to the company.

A younger Dublin based male driver, say aged 30, seeking comprehensive cover on the same car can expect to be quoted £392.40, some £30.60 cheaper than its previous price of £432.

A 37 year old female motorist living in Galway, with a 1994 Nissan Micra valued at £8,000 will be quoted its existing rate of £172.08 for comprehensive cover.

All quotes are based on the driver holding a full licence and full no claims bonus.