Motor insurance premiums fell by 8.5% in year to June, says broker

Drivers who shop around are beating overall market decline in cost of cover

Motor insurance premium quotes can ‘vary wildly from person to person’. Photograph: iStock

Motor insurance premium quotes can ‘vary wildly from person to person’. Photograph: iStock

 

The average motor insurance premium secured for customers at renewal is down by an average of 8.5 per cent since June 2020 and 24.5 per cent since June 2019, according to motor insurance broker Coverinaclick.ie.

The decline in premiums reflects the final premium paid, not the initial renewal quote offered by the current insurer, with the online broker warning that drivers who opt to auto-renew their cover are missing out on savings.

“We have software-based processes in place to compare the market for each customer at each renewal,” said Coverinaclick.ie managing director Jonathan Hehir.

“Motorists should ultimately be switching on every two to three years.”

The latest consumer price index from the Central Statistics Office (CSO) reports that car insurance figures have reduced by about 6 per cent over the last 12 months, but this group includes people who accepted their renewal premium from the existing insurer, Mr Hehir said.

“If one insurer is reducing its price, you can be sure that many others are also doing so, as it has become a very competitive market,” he added.

Fragmented product

Coverinaclick.ie said the approach each insurer takes to driver risk profiles varies hugely and changes frequently.

“Motor insurance is one of the most fragmented products out there when it comes to pricing and quotes can vary wildly from person to person, and insurer to insurer. That’s why it’s absolutely imperative that people don’t simply accept the renewal price given by their current insurer.”