Motor Insurance is mandatory in Ireland and depending on the type of insurance it protects other road users, their vehicles or any other property from the insured car driver.
The premium for the motor insurance depends on the vehicle, driver’s age and experience and the type of license the policyholder has.
Car Insurance in Ireland for young drivers is quite high. The cost can be reduced by joining with the parent as co-driver at the earliest and it will turn quite useful when the youngster applies for his own vehicle insurance at a later stage.
The problem of paying high premium has snowballed into a big issue in Ireland as some young drivers have been asked to pay premium anywhere between 6000 pounds and 14000 pounds.
Companies defend the high premium as youngsters in Ireland drive more recklessly than anywhere else in the world. Companies say they have to increase the premium to compensate for the cost of higher payouts.
Increase in Insurance premium in Ireland will affect the livelihood of many people who depend on vehicles as drivers. Cost of paying more than their income every year on insurance premiums without claims is a waste of money for many drivers.
Companies blame the spurt in claims as to the main reason for higher premiums but according to statistics accident rate in Ireland has dropped by 44% from 2012 to 2017. So, what is the necessity to increase the premium when accidents have reduced?
The real reason should be to increase the profits of the Insurance companies. The Insurance companies had earlier invested their funds in financial markets and reaped huge profits. But, as the returns from the financial instruments have stagnated the companies in need to increase their bottom line have resorted to increasing the motor insurance premium to illogical levels.
How to shop for the cheapest car insurance?
When shopping for cheap insurance you should not compromise on the type of Insurance cover the Insurance Company offers for the lower premium. Many times, while opting for a cheaper premium the driver loses the necessary insurance cover.
Many insurance companies try to sell cheaper policies without any adequate cover. Owners of the vehicle should follow some basic steps to get the best deal for their vehicle.
•The vehicle owner should analyze the policies of every Insurance company available and try to get the best deal. You should not hesitate to bargain for the lowest possible premium.
•Add only known good drivers in your policy which would reduce the cost of premium considerably.
•Opt for No-claims bonus to cut the insurance costs.
•Opt for a single payment of the premium and reduce the overall cost of the insurance.
•Increase your voluntary excess which will be helpful in reducing the premium if you are a safe driver.
•Drive wisely and avoid accidents to save yourself from paying the accident cost if you have purchased a third-party insurance cover.
Car Insurance Ireland companies run their business to gain profits from the business. They try to lure a customer by advising him to opt for cheaper premium insurance like third party insurance.
The third-party insurance is a basic insurance policy without many benefits. Many drivers opt for this insurance for the sake of ensuring their vehicle as per Ireland government rules. These insurances do not give any cover during accident, theft or a fire accident.
Car Insurance in Ireland is facing a crisis because of the attitude of the Insurance companies to increase their profit at the cost of the public. The Ireland government should interfere during this crisis in the best interest of the drivers. The drivers cannot afford to pay a huge premium without any real benefits or should not be forced to buy worthless Third-party insurance policies.
Insurance policies should be considered as an asset like their vehicles and they should not feel the burden of having a car during an accident/theft/fire and should buy the best available car insurance policy at the cheapest possible rate.