The frequency of accidents recorded by insurance companies increased in 2004, while the average premium of comprehensive insurance for young males aged between 17 and 20 with a full licence was as high as €3,443 with one company.
Those on provisional licences also paid up to €4,500 for their insurance, according to a new report from the financial regulator.
However, average premiums overall fell by 18 per cent for comprehensive cover and 16 per cent for third party fire and theft cover (TPFT).
This followed a period of rapidly rising premiums, when the cost of comprehensive cover grew by 45 per cent and the cost of TPFT cover grew by 70 per cent between 1997 and 2003.
Overall, the motor insurance market grew by 81 per cent to almost 1.5 million policies between 1997 and 2004, the report reveals.
While delays in settling claims remain, the regulator expects that next year's statistics will show a change in this trend due to the introduction of the Personal Injuries Assessment Boardin 2004.
The financial regulator's statistical report on the motor insurance industry, based on data from the Irish Insurance Federation, also reveals a small growth in the number of people taking up TPFT insurance since 2002. This is more likely to be held by young drivers under 25 years of age. But overall, such policies accounted for 28 per cent of the market,down 10 per cent from 1997.
The highest surpluses per policy were also recorded for young male policyholders, a fact criticised by the National Youth Council of Ireland yesterday. For example, those aged between 21 and 24 with a full licence showed a surplus of €2,266 per policy in 2004 for TPFT.
However, overall the average surplus per policy decreased by 22 per cent to €512 per policy for comprehensive insurance and by 18 per cent to €705 per policy for TPFT insurance.
Among the key findings of the report are:
- Although accident frequency had been on a downward trend between 1997 and 2003, it increased by 7 per cent for comprehensive cover in 2004 and by 13 per cent for TPFT cover. This equates to 6.4 accidents per 100 policies for comprehensive cover and 4.5 accidents per 100 policies for TPFT
- Comprehensive cover accounted for 70 per cent of the market, up from 55 per cent in 1997.
- 2004 saw a growth in the average claim costs for the first time since 1997, at 6 per cent for comprehensive cover and 10 per cent for TPFT cover.
- Males with full licences aged between 17 and 20 paid average premiums of between €2,189 and €3,443, depending on the company, for comprehensive insurance in 2004. Those with provisional licences paid up to €4,500.