Drivers covered by the Republic's largest insurer, Guardian PMPA, face an increase of 4.5 per cent in their premiums. But rates for new customers in Co Louth are going up by 30 per cent, due to the high level of claims from motorists insured in that county.
Meanwhile, the Minister of State for Youth Affairs, Mr Willie O'Dea, is to put a proposal to Government to force all insurance companies to quote for people under 25.
According to a spokeswoman for Guardian PMPA, the rise in premiums follows a review of the company's claims experience throughout the State in recent years. This showed that the number of claims had increased, due to increased traffic density and other factors. Guardian PMPA insures 30 per cent of private cars in the State. The worst news is reserved for Co Louth, where new customers will pay 30 per cent more than the prevailing rate due to the high level of claims, while existing customers' premiums will be brought into line with the Dublin rate. Dublin has traditionally had higher rates than other counties.
The company was unable to say precisely how its existing Co Louth customers will be affected by the decision to increase premiums to the Dublin level, as there are many different schemes depending on age, driving history and gender. However, it will be more than the 4.5 per cent increase the rest of the State is facing.
The company emphasised that the decision to increase first-time insurance policies in Louth was based solely on Guardian PMPA's own claims experience. It was not based on the results of the Garda pilot scheme, Operation Lifesaver, in Meath and Louth, designed to reduce accidents in the two counties. The results of the Garda operation are to be released in a few weeks' time.
Louth County Council has surveyed accidents in the county and claims that only 30 per cent involve cars registered in Louth. Guardian PMPA and Hibernian Insurance have announced concessions to drivers under 25. However, Mr O'Dea said the impact of a 6 per cent cut was "marginal at best". The rates charged to young people were virtually prohibitive.
Mr O'Dea said he had made a submission to the Minister for Enterprise and Employment that car insurance companies, like medical insurance companies, should be compelled to quote for everyone. Only a handful of companies are willing to quote for motorists under 25. A side-effect of this was the significant increase in the number of uninsured drivers, he said.
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