The Tánaiste, Ms Harney, has called on motor insurers to reduce premiums after a study found quotations can vary by up to 500 per cent, write Arthur Beesley, Political Reporter, and Laura Slattery
Ms Harney said price variations that had emerged in the study by the Irish Financial Services Regulatory Authority (IFSRA) emphasised the importance of competition in the insurance market.
"It underlines the importance of consumers shopping around. This is as important in the area of financial services as it is in other sectors. The Government is delivering on its side of the insurance reform programme, and I hope that insurers will respond by reducing their prices."
Ms Harney was speaking after the Personal Injuries Assessment Board Bill passed the committee stage of the Dáil. The Bill to establish the board, which will make awards in cases where legal issues are not disputed, is expected to become law before the end of the year.
The IFSRA survey revealed that some drivers are paying almost five times more for motor insurance at some companies than at others.The financial watchdog found that the differences in premiums quoted by eight insurers for eight sample consumers across a range of ages, professions, car and licence types varied from €303 to a massive €5,110.
In one example, a 25-year-old male bar-worker in Galway was given a quote of €1,102 at AIG and €6,212 at Royal & Sun Alliance.
Another sample consumer, a 22-year-old man living in Dublin with a one-year provisional licence, was found to save €3,779 by searching for the lowest quote available, while a 68-year-old woman could save up to €3,496.
Ms Mary O'Dea, consumer director of the financial regulator, said the survey should help consumers make informed choices.
The survey, to be updated every three months, is available on the regulator's website, at www.ifsra.ie. Copies can also be obtained from IFSRA's helpline at 1890-777 777.
Ms O'Dea said it had not been easy for consumers to shop around as insurance companies had not given customers notice that their motor cover was due to run out.
By law insurers must now give customers 15 days' notice of their renewal date, giving motorists time to seek cheaper insurance.