Drivers can save between 30 and 50 per cent on their motor insurance by shopping around, the second cost survey of the market by the Irish Financial Services Regulatory Authority (IFSRA) has revealed.
The comprehensive motor insurance premiums quoted by insurers for sample drivers show that some motorists will pay almost twice as much for cover if they choose the most expensive insurer rather than shopping around to find the cheapest.
The financial watchdog found that the differences in premiums quoted by seven insurers for eight sample consumers across a range of ages, professions, cars and licence types varied from €113 to a massive €1,367.
For example, a male 30-year-old cleaner who drives a 1997 Fiat Punto, lives in Dublin and has a full licence for two years was quoted annual comprehensive cover of €1,565 from AXA but just €804 from FBD.
The average price difference between the highest and lowest quotes in each category was €535.
Three insurers - Allianz, Hibernian and Royal & Sun Alliance - refused to quote a 19-year-old student from Cork with a one-year provisional licence.
The lowest comprehensive cover quotes available in this category were €3,271 for a male driver from FBD, and €1,927 for a female driver from Eagle Star.
Allianz, Royal & Sun and Eagle Star would also not insure a 27-year-old mechanic from Sligo driving a Volkswagen Golf GTI with a four-year no claims discount and a full licence for six years.
The eight driver profiles differ to those that featured in IFSRA's original December 2003 survey. That survey found even more dramatic differences in prices, with premiums varying up to 500 per cent for some drivers.
A spokesman for the IFSRA said the financial regulator wanted to cover as broad a range of profiles as possible to assist consumers. The purpose of the cost comparisons, which would be published every three months, was to demonstrate the benefits of shopping around at any given moment, rather than measuring the cost of insurance over time.
He added that if IFSRA kept using the same profiles each time insurers might tailor their premiums so that those categories of driver were offered more favourable quotes.
The motor insurance surveys are available to download on www.ifsra.ie and by calling IFSRA's consumer helpline on 1890 777 777.
A "shop around form" is included to help motorists determine the most competitive quote.
Ms Mary O'Dea, IFSRA's consumer director, described the form as an additional aid for consumers. "By using this form they can jot down costs as they get quotes from their broker or insurance company. It also takes into account the important questions to ask about the product such as policy benefits and payment methods."
The IFSRA also plans to publish new surveys on credit cards, home insurance and personal loans during 2004.
