Insurance Premiums and How to Lower the Costs

Insurance Premiums

The latest Consumer Price Index shows a decrease in motor insurance premiums. Between April of last year and this year, they are at 13/8%. However, these reductions are microscopic compared to a massive 70% rise in prices for premiums over the last three years.

Long story short, insurers are still massive hits to consumers’ wallets everywhere.

The price discrepancies with the Irish car insurance market are as broad as ever. Most motorists don’t realize certain insurers target a niche in the market. If you aren’t inside that select group, you could find yourself paying a lot more if going with that provider.

Some insurers charge different prices for different people for the same level of cover. Recently, a case cropped up where the insurer quoted one person €1098.00 for a policy. After researching, they found another insurer for the same coverage was only €363.00.

Therefore, it’s vital for consumers to shop around and consider valuable advice when in the market for a new policy. This process is essential for young, first-time drivers as well as experienced drivers looking to renew their policy.

Factors for Higher Insurance Premiums

Apart from industry dynamics, some factors will always affect your insurance premium. These are your amount of claim-free years driving, how long you’ve held a full or learners license, your age, and the class and age of your vehicle.

For young drivers or parents of a young driver, it’s essential to know insurers look for big money with these types of policies. Besides, a surprising number of people don’t know the extent to which lessons and experience can reduce the premium they pay.

If people knew how much these critical factors could help in reducing their costs, they might be a little more proactive in applying for their test. Switching from a provisional to a full license could reduce the cost of insurance premiums from anywhere between 30 to 80%.

The most substantial limiting factor for young along with first-time drivers is their lack of access to a no claims bonus or discounts for a driving experience. Because of these factors, they almost always pay more than drivers with more experience.

There is also limited competition in the market of first-timers. Drivers with a total no claims bonus could have around 15 or more insurers ready to quote for their business. On the other hand, inexperienced drivers could only have approximately five looking to quote.

While going for a motor insurance policy is good for some, it’s not for those with little experience driving. With a limited number of insurers wanting to work with this group reduced, it’s vital to ask experts to scour the markets for the best deal possible.

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