Young motorists can save as much as €1,700 by shopping around for car insurance, according to a survey by the financial regulator, Ifsra.
The study, which compared policies provided by seven different insurers, showed that a 20-year-old female student with a provisional licence living in Co Kildare could spend as much as €2,302 on third party, fire and theft cover for her Fiat Cinquencento, or as little as €971 depending on where she buys the policy.
The prices for a male driver in the same category range from as much as €3,567 down to as little as €1,957. In this scenario, Hibernian provides the best-value motor insurance, according to the regulator.
For a 40-year-old housewife or househusband driving their Seat Ibiza in Co Wicklow, the best-value provider as shown by the survey is AXA, which could save the woman as much as €246 on third party, fire and theft cover and the man €375.
Meanwhile, a 50-year-old bus driver living in Co Meath and driving a Toyota Corolla could spend as much as €1,057 or as little as €486. This time, Hibernian, which offered the best-value product for the young motorist, is the most expensive, though the policy does provide more benefits than those offered by the other insurers.
The regulator warned consumers not to jump at the cheapest policy without checking exactly what it covers.
"Some consumers have difficulty understanding the various policy benefits that different motor insurers offer," said Mary O'Dea, consumer director at the Ifsra.
"While there is money to be saved on motor insurance, it is worth bearing in mind that the cheapest policy may not always be the best for you."
It may be better for consumers to pay more money for a policy that includes particular benefits such as replacement car hire or protection for a large no claims discount, she said.
The survey also found that policy excesses, the proportion of any claim that must be paid by the policyholder, range from €125 to €300 depending on the insurance provider.
In some cases, it may be possible to pay a lower premium if you are prepared to risk paying a high excess should you need to make a claim, the regulator said.
