Central Bank, Ireland reports an increase in car insurance premiums in spite of a decrease in the number of claims
Government’s Cost of Insurance Working Group (CIWG), Ireland recommended establishing National Claims Information Database (NCID) in Ireland with a view to promote transparency in the insurance market and to enable the customers to make informed decisions after understanding how insurance market functions in Ireland. Based on the information of NCID, Central Bank has recently published a report which illustrates that motor insurance premiums in Ireland have significantly increased by 42% during the last decade even though the claims for motor insurers have fallen by 2.5% during the period. Precisely, the number of injury claims reduced by 20% and that of damage claims decreased by 43%. The drivers are upset with the news that despite the reduction in the average cost of claims per policy, the insurance companies have increased the average premiums significantly.
By reviewing the data and the report, drivers and a layman may not believe the claims of insurance companies that the companies are heavily burdened with huge payouts. However, the claims of insurance companies can be justified on grounds that there may be a reduction in the average cost of claims per policy but the cost of the ways to settle the claims shall also be taken into account while calculating costs to insurance companies. As long as claims are settled directly or through PIAB (Personal Injuries Assessment Board), the insurance companies are not burdened. But the litigation claims which are settled through courts cost considerably high to insurance companies. This is also evident from the statistics published by Central Bank which state that directly settled claims with average compensation payments of €11,674 had €1,385 legal costs, whereas average compensation payout of €22,631 had €753 legal costs on an average when these claims were settled through PIAB.
The worth noticing legal cost of €23,031 was incurred by insurance companies for settling claims through courts which amounted to an average payout of €45,390. Seeing the statistics, it is still a question that whether the customers are paying too much or the right amount as their insurance premiums. Central Bank is making every effort to facilitate transparency in the insurance industry so customers can make informed decisions. Additionally, Central Bank is trying to ensure value for money for customers and to give them confidence that their insurance claims will be paid when the need arises.
Car owners/drivers can review the reports published by the Central Bank and can make their decisions accordingly. Meanwhile, Central Bank is trying to bring some justified reforms in the car insurance Ireland industry, one must not ignore buying car insurance in Ireland for the sake of saving the cost of high premiums. This is not only because car insurance in Ireland is mandatory for drivers/car owners but also because skipping car insurance Ireland can cost you hefty in case your car faces a threat like accident, fire, theft, breakdown.
Furthermore, it is wise to buy extensive coverage while buying car insurance in Ireland. If you are unsure about which car insurance policy is apt for your requirements then you can get in touch with an executive at a renowned insurance company in Ireland who will assess your insurance requirements in detail and will suggest an appropriate policy accordingly. All established companies lend a helping hand to their customers in choosing an appropriate car insurance policy by assessing their needs and mapping them with the most affordable policy for them which also includes maximum coverage. The customers can also get customized solutions with big insurance companies. It is wise to buy car insurance Ireland with a company that has a track record of passing genuine claims without hassles so that your insurance experience remains pleasant.