Motor premiums down 45% - IIF

Motor insurance premiums have fallen by an average of 45 per cent since 2003, but the increase in road fatalities is a major concern, the Irish Insurance Federation (IIF) said yesterday.

The cost of insurance has fallen up to 56 per cent for young male drivers and 53 per cent for young female drivers in the past three years, the insurance industry body said.

The IIF's claims are based on comprehensive and third-party, fire and theft insurance quotes given by eight insurance companies to male and female drivers of different ages who drive two-year-old Ford Fiestas and Volkswagen Golf cars and live in Dublin. A similar survey was carried out in 2003.

The findings broadly echo data from the Central Statistics Office that show motor premiums are now back to 1999 levels when adjusted for inflation.

Michael Horan, the IIF's non-life insurance manager, said the drop in premiums had coincided with the insurance industry's return to profitable times in recent years.

He attributed the drop in premiums to an improved claims environment, increased competition in the market, greater cost efficiency by insurance companies, the IIF's anti-fraud campaign and the impact of the Government's insurance reform programme.

But Mr Horan called for more resources to be put into road safety, following a 7 per cent increase in fatalities last year.

"Road safety urgently needs to be given the political priority and the resources it so desperately needs before many other people needlessly lose their lives on our roads," he said.