Motorists will be forced to pay more for insurance after one of the leading players pushed through double-digit premium rises. The fear is that others will follow the lead of RSA, which owns 123.ie. It has emerged that it raised premiums by 13% in September, in a move that bucked the trend for the rest of the market.
RSA has ended up as the market leader for motor and home insurance. Other players such as Aviva, FBD, Zurich, Axa, Allianz, AIG and Liberty will be watching developments closely.
RSA has blamed higher claims for increasing premiums.
Here are some handy tips on driving down the cost of your car insurance:
Discounts for using public transport
Some car insurance companies, such as brokers Chill Insurance, now offer discounts of up to 20% to policy holders who use public transport to get to work. You'll have to prove it by showing you have a travel pass or a tax-saver commuter ticket.
Downgrading your cover
"You could consider reducing your cover to third party, fire and theft if your car happens to be over 10 years old, but you should take expert advice before doing this," says Jessie O' Connor, motor insurance expert with broker Getcover.ie.
Raising your excess
If you have been claims-free for a number of years, you could consider raising your excess as a way to reduce your premium. Selecting a higher excess means that you will have to pay a higher contribution in the event of a claim, so think carefully about this. You might be saving a few euro on your premium but may be left with a hefty sum to pay if you are unfortunate enough to claim.
Multi-insurance discounts
Check out if there are any deals for buying car insurance and home insurance from the same provider. Many offer multi-insurance discounts. AA members, for example, can get a discount of up to 145 on their car insurance with AA Ireland. You should also check if your premium would be lower if you added your spouse or partner to your policy, as is often the case.
Review your job descriptions
The occupation you list with your insurance firm can make a big difference to your premium. For instance, journalists are generally regarded as a higher-risk occupation because it is assumed they do a lot of mileage per year. However, some firms may have a lower-risk classification for journalists who primarily work from home.
Online discounts
Insurance company AXA and brokers 123.ie and Onedirect.ie are among a number of providers who offer 10% discounts if you book your insurance online.
Ensure your car's value is not over-rated
Many of us probably believe our cars are worth more than what the market says they are worth, so it makes sense to obtain an accurate value. "Don't overvalue it as this will push up your premiums, but don't undervalue it either as you will run into difficulty in the event of a claim," says O'Connor of Getcover.ie. O'Connor also recommends asking your provider about specific thresholds. "For example, the cost of insurance might jump at values over €20,000, so you might be better of insuring your car for €19,900."
Also worth noting is that if you have a fire or theft claim, the insurer will only pay what they consider to be the market value of the car.
Discounts for extra driving tuition or assessments
Aviva offer lower premiums if you complete their Ignition driving course, but if you have passed your test within the last five years you can also do a free, one-hour safe driving assessment. Passing the assessment could save you as much as 40% off your car insurance. They also offer discounts for those with advanced driving qualifications.
Should you protect your NCB?
Depending on who you talk to, step-back bonus protection is either an unnecessary add-on or something that could save you hundreds if you need to claim. Adding step-back bonus protection to your policy means that, in the event that you have to make a claim, you will not lose all of your no-claims bonus. You may just lose a year or two, although check with your insurer to see how exactly it works with them.
