Motorists could save €300 on car insurance by shopping around, Central Bank finds
Central Bank research shows that consumers can save around €300 by shopping around for car insurance.
The regulator gathered multiple quotes across 16 consumer profiles and found differences in quotes for identical driver profiles.
The research also showed that only 9% of surveyed consumers switched insurers at renewal, with 1 in 5 renewing without engaging with their current insurer.
The research is part of a wider Government plan to enhance transparency and engagement in the insurance market.
When it comes to higher-risk consumers, quotes are not always available for them. So it may be beneficial to explore brokers or to contact the insurers directly.
The Central Bank says that there is a reason that a quote is different for each person, things like vehicle make and other specific factors to the consumer.
Director of Insurance at the Central Bank, Seána Cunningham, said: “Our research shows that the price consumers are quoted for motor insurance can vary significantly from one insurer to the next for the same driver and the same vehicle. There are potential savings of around €300 available by comparing multiple quotes, particularly for people who are seeing very high quotes, so there is benefit to shopping around.
“However, it is not just about price. Consumers should also compare the level and type of cover provided to make sure they are getting the right cover for them.
“The research we have published today includes practical steps to take that can help reduce your premium."
Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy added: “Today’s publication highlights the importance of greater transparency in the motor insurance market and the potential for consumers to secure better value.
“We have made significant progress in reforming the motor insurance market in recent years, with premiums now 37.6% below their 2016 peak and having fallen by 5.4% year-on-year.
“Alongside our work to reduce the cost of insurance, empowering consumers through enhanced transparency is integral to our approach to insurance reform.
“Consumers deserve to understand why their premiums have changed and what they can do to secure better value. That is why we are taking steps to improve transparency across the sector, helping motorists better understand their premiums and compare the options available to them.
“Today’s publication demonstrates why this work matters, with motorists potentially saving approximately €300 by comparing quotations from different insurers. As part of our wider work, improving financial literacy will be essential in supporting people to make informed financial decisions, better understand the options available to them and secure better value for their money.”