Originally Posted by
Mark Butler
To put an informed angle on this whole matter. Insurers consider a number of variables for motor insurance including:
- Car make and model (covers issues such as the repair costs if there is an accident)
- Engine size (probably a bigger issue for younger drivers but with technology changing all of the time the power output from smaller displacements is very impressive in some cases so the difference between small and large engines can be negligible........)
- Location
- Alarmed yes or no
- Value
- Occupation
- Previous claims history
- Convictions
- Their own claims experience with different types of car and different driver profiles (a couple of multi million euro claims on their own account will focus the insurers mind as well.........)
- Full licence v. provisional licence
- Number of year's driving experience etc. etc.
- The level of profitability that they are hoping to achieve on the business
- Rising claims costs (in particular, personal injury claims)
All of these variables together with the insurers desire or not to underwrite certain segments of the market result in difference prices being put forward. Add to that the fact that from time to time an insurer may wish to be more aggressive to win some market share and you can have a large volatility in the quotes that are received.
Actions that may assist in getting more favourable terms include:
- Length of time with a particular insurer
- Ringing around the different insurers
- Using a good insurance broker who may have some better terms available
- Seeking some online quotes
- Calling into your local insurance company branch office to try to negotiate face to face
Remember it is an insurance market so the consumer needs to some around and be savvy at the same time. There is no simple answer to this I am afraid and it does not make paying out a large premium to an insurer any easier but there is a cost associated with being able to legally drive.
Mark
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