Every Monday Sinead Ryan brings you the best consumer advice in order to save you money on a variety of topics. This week she’s been looking at how to get the most from your car insurance policy.
Location, Location, Location
It’s not just important when it comes to buying a house ”“ it can also affect your car insurance premium. Study by AON Insure found that those living outside Dublin pay more for policies, however, Waterford is the cheapest place to live.
Within Dublin, postal code matters! Big difference between say, Dublin 12 and Dublin 6W (!)
-Â Â Â Â Â Â Â Â Â Speed restrictions much higher/more common in capital
-Â Â Â Â Â Â Â Â Â Traffic volumes mean slower speeds overall.
-Â Â Â Â Â Â Â Â Â Rural journeys are longer, more frequent and on worse roads = cost more to insure.
Examples:
35 year old Male, 6 year old Avensis worth €5,000 pays:
€350 in Dublin;Â €414 in Limerick
65 year old Female, 4 year old Corolla worth €8,000 pays:
€289 Waterford;Â €311 in Cork
27 year old Female, 6 year old Focus, €4,000 pays:
€603 Waterford;Â €694 Limerick.
SHOP AROUND! Many insurers have “preferences” for who they want on their books. Use a broker to do the legwork. href="http://www.iba.ie/">www.iba.ie for local listing.
Or chill.ie to compare online.
WOMEN DRIVERS ”“ YOUR PREMIUMS ARE GOING TO SOAR!
Ruling by ECJ last year banned using gender as a calculation in insurance policies. This means that men and women must be charged the same for motor cover.
Health Insurance market ”“ this already exists through community rating BUT motor insurance is compulsory ”“ so everyone is affected.
WE KNOW young men under 25 have more accidents and are more reckless drivers. Gender ceases to become an issue over time and by middle-age is equal among sexes.
After 12 December 2012 men and women must be charged equally.
style="text-decoration: underline;">Result:
-Â Â Â Â Â Â Â Â Â Insurers will err on side of caution and INCREASE women’s premiums by up to 25pc.
-Â Â Â Â Â Â Â Â Â Young women will be subsidising young men
-Â Â Â Â Â Â Â Â Â Not only will there not be fewer accidents/claims, but more young males will now be on the road as they can afford premiums.
style="text-decoration: underline;">What Can I DO?
Premium increases will take place from Renewal Date. Switch before 12/12/12 to get lower premium for next 12 months if you are due up for renewal early 2012.
-Â Â Â Â Â Â Â Â Â Check if admin fee payable
-Â Â Â Â Â Â Â Â Â Check if it affects your no claims bonus.
Join the conversation: email tom@newstalk.ie
