Longford’s 4,100 young drivers are limiting value options by going direct for motor insurance
“The difference between having access to a variety of providers – and going to just one – can be over €2,000”
Limited competition in the first-time market and a mistaken belief that going direct to an insurer is the best value, is costing young drivers thousands on an annual basis, and may be precluding some from even getting on the road. Such is the contention of experts at Coverinaclick.ie who say that Longford’s young drivers are vulnerable when it comes to motor insurance, and that a lack of knowledge, experience and a limited budget are all combining to make insurance a very expensive business for them. The car insurance experts have highlighted the huge variations in the quotes given by direct insurers, or brands with limited insurers, and those accessed by a broker for young drivers. In 3 out of the 4 sample cases the broker was able to offer the cheapest premium, while the difference in quotes surpassed the €2000 mark in one instance.
Jonathan Hehir, Managing Director of Coverinaclick.ie explained,
“There are currently 4,123 drivers in Longford below the age of 25 with either a learner or provisional licence – there’s no doubt that some of these motorists are paying over the odds for their insurance by going direct to an insurer.
Cars, clothes, electrical appliances – no matter what you’re shopping for - people don’t usually just look at one manufacturer or one retailer when they are making a purchase that’s going to cost them a few hundred Euro. So, it doesn’t make sense when it comes to car insurance not to look around the market to see what’s on offer either. By going direct to only one insurer you are limiting the number of options open to you, and therefore your chances of getting the best value around”
Our figures capture this reality in a snapshot:
Mr. Hehir went on to say,
“Young drivers are in an unenviable position in that they are usually quoted the highest premiums but generally have much less disposable income than their older motoring peers. What’s more, in order to get these premiums down they need experience on the road – for which they need insurance. It’s an age-old catch 22!
So, in light of this younger drivers arguably have the most work to do to in finding the best value premiums - many will simply not be able to get on the road if they can’t afford them.”
The insurance experts say that while shopping around is paramount, there are several other steps young drivers should take to pro-actively reduce their motor insurance premiums.
Complete all required driving lessons
Obtain their full license
Get some named driver experience – perhaps on a parent’s policy
Mr. Hehir concluded
“A driver with a full no-claims bonus could have 15 plus insurers looking to quote for their business, whereas a first-time driver might only have 5 insurers looking to quote. While going direct for a motor insurance policy is favoured by some, it’s often not advised for less experienced drivers as the number of insurers wanting to insure this group is greatly reduced, so it’s important that they get experts to scour the market for the best deal.”