A report on the high cost of motor insurance for young drivers is to be considered by the Government, an Oireachtas committee was told yesterday.
Ms Anne Troy, of the insurance division of the Department of Enterprise, Trade and Employment, said significant research had been undertaken on the issue. "We will shortly bring proposals to Government designed to address some of the issues identified as contributing to high insurance costs," she told the Oireachtas Committee on Enterprise and Small Business.
The Department was conscious of the degree of public concern about the issue and the difficulties for young drivers.
"We are particularly aware that for some young drivers, especially those living in areas with sparse public transport, a car may be the only way they can get to work," she said.
Mr Brian Dalton, also of the insurance division, warned that whatever the outcome of various initiatives, there was clearly no soft option for reducing motor insurance premiums for young drivers in general.
"As a group, they unfortunately represent a very high risk for insurers," he said. "Ultimately, the reduction of cost depends on the reduction of risk, and this can only be achieved by the adoption of safer driving standards and education in driving skills."
Ireland, he added, currently ranked third-worst of the 15 EU member-states on road-accident frequency, and its fatality rate was the highest in Europe.
Mr Dalton said a Deloitte & Touche report had found that throughout the EU young drivers paid more for motor insurance. Premiums paid by the younger driver in Ireland were high relative to those paid by more mature and experienced drivers, which reflected the high risk represented by the younger driver as a category.
The report had also found, he said, that in comprehensive and non-comprehensive classes, the 17-24 age group was responsible for 3.5 times the claims cost of the 36-40 age group. It added, said Mr Dalton, that the key to reducing premiums for the younger driver was through improving safe driving performance resulting in fewer claims.
Mr Dalton said EU law prevented the Minister from intervening directly with the insurance companies on premium levels or on what risks they were prepared to underwrite.
"It is, therefore, very clear that the primary focus of initiatives, aimed at reducing the cost of motor insurance costs for young drivers, must be on reducing the frequency of accidents and the subsequent claims," he said.
Figures given to the committee by Chief Supt Denis Fitzpatrick, of the Garda National Traffic Bureau, showed that 35,444 checkpoints had operated during the first five weeks of the Christmas and New Year road safety campaign. A total of 2,242 people had been breathalysed, 1,059 had been arrested for drink-driving, 18,568 on-the-spot fines were issued for speeding and 6,266 for failing to wear safety belts.
