TRENDS HIGHLIGHT THE EARLY IMPACT OF THE EU GENDER DIRECTIVE
AonInsure.ie, one of Ireland’s largest insurance intermediaries, offering great value and benefits from a panel of trusted insurance providers, today published the third quarterly AonInsure.ie Car Insurance Pricing Index. The Index provides consumers with a valuable reference tool which will help them to know whether or not they are getting value from their car insurance provider. The quarterly Index highlights the price differential for Irish drivers throughout the country and shows that based on the same risk criteria there are significant differences in premiums paid by people depending on the county where they live.
A key finding for the third quarterly Index is that the motor insurance market is still unsettled and as previously predicted, it could be month yet before we get the full picture of the impact the directive has had.
The trend analysis by the AonInsure.ie experts highlights that the continuing aggressive competition in the industry is still a significant trend in keeping premiums at a relatively low level despite the re-adjustment of premiums.
Similar to the inaugural Index published in November, the county differentials remain a key factor in premium levels for drivers of all ages and all genders. For example, female drivers in Cork aged 27 with fully comprehensive insurance and driving a Ford Focus are paying a premium of €666 which is €78 cheaper than drivers in Meath and Kildare who are paying €744. When compared with the Index in November, the same aged driver with the same risk criteria was paying €575 in Cork, while in Galway they were paying €600 and €657 in Limerick.
In the 35 year old male category, drivers with fully comprehensive Insured + spouse insurance, driving a Toyota Avensis are currently paying €300 in Waterford compared with €378 in Limerick and €359 in Kildare – a difference of €78 and €19 respectively. This illustrates a drop in premium of €23 in Limerick when compared with the November edition of the Index while there was an increase of €18 in Waterford.
For 27 year old males driving a Volkswagen Passat, insured as an individual with fully comprehensive insurance the most expensive premiums are being paid by drivers in Meath, Limerick, Kildare, Galway and Dublin – with premiums between €830 and €1067 versus €758 in Waterford and Cork.
Commenting on the findings of the third quarterly Index, Declan Cahill, CEO, AonInsure.ie said: “We have created the AonInsure.ie Car Insurance Pricing Index as a tool to track trends in premium prices across geographies, genders and age. As one of the largest intermediaries in the country we have extensive data at our fingertips. We use our expertise to create a snapshot each quarter of the best available premium for each segment based on an identical set of risks so that consumers can be better informed about what their premium level should be. The quote an individual is given will be determined by a range of factors but we have had significant feedback from consumers about how useful it is for them to know what the best available quote is when they are shopping around. As with last quarter’s Index, there continues to be a range of prices paid by people when all risks are the same – except for the county where they live. Geography continues to be a key factor in determining car insurance costs in this country.”
Outside of the geographical differences there is also some movement in premium prices amongst younger male and female drivers which can be attributed to the imminent introduction of the are EU Gender Directive.
For 21 year old female drivers, average premiums have increased by between €168 and €279 for those with fully comprehensive insurance and a provisional license, driving a Peugeot 206. In November of this year, a 21 year old female in Dublin was paying a premium of €1,171 and now, two months later she is paying €1,339 – a difference of €168. In November, a 21 year old female driver from Waterford who was paying €1084 is now paying €1380 – a difference of €296. The trend is going in the opposite direction when we look at 21 year old male drivers with a provisional license, fully comprehensive insurance and driving a Volkswagen Golf. In November, a driver in Dublin would have paid €2,096 but this premium has now decreased to €1615 – €481 less. Similarly a driver from Cork would’ve paid €1,861 in July and now is paying €1599 – €262 less. This indicates that the market is making gradual moves to bring the male and female premiums closer together.
Commenting specifically on the likely impact of the EU Gender Directive, Mr. Cahill said: “Traditionally gender was the single biggest factor when car insurance premiums were being calculated. The Directive makes gender irrelevant and as a result makes other factors more important. This includes a driver’s previous claims history, the status of their licence – including whether or not they have penalty points as well as whether or not they are insured as an individual or with a spouse. This is a fundamental reset for the market and it is likely to take most of next year before the impact for both the industry and the consumer is fully known.
“Regardless of these expected changes, we continue to work with our panel of providers to ensure that appropriate products are developed – based on the remaining risk factors – which will continue to deliver value for our customers. I would urge consumers to shop around before they renew and to equip themselves with the information provided in the Index so that they are as well informed as possible prior to signing up for a new policy,” Mr. Cahill concluded.
AonInsure.ie will publish the car insurance pricing index each quarter, tracking national and county trends across the car insurance business. It is advising consumers to go online to check the details of the Index at www.aoninsure.ie/Index . By familiarizing themselves with the best available premium prices they will be better positioned to ensure that they get value from their provider.
The AonInsure.ie Quarterly Car Insurance Pricing Index (click on the image below to view)