Motor insurance report a whitewash for young people paying high premiums
The findings of the “Review of motor insurance premiums for young people” report issued today (June 11th) by the Department of Transport+ is a whitewash which could have been written by the Insurance industry according to the National Youth Council of Ireland.
“This report was commissioned as a result of campaigning by NYCI and we are very disappointed with its findings. It was supposed to investigate why younger drivers such as those under 20 are paying on average four times as much as older drivers for motor insurance and how to address the issue. It fails to do that,” stated James Doorley, Assistant Director of NYCI. “While we accept prices have come down in recent years, by about 45% in 2003-2007 they are being benchmarked against a very high level in 2002 when prices had increased by 61% between 1997-2002,” he continued.
The data used in this report has been provided by the Irish Insurance Federation, who has a vested interest in the results despite the fact this document was meant to be independent. In addition the findings contradict recent statistics from the Financial Regulator*, which showed that insurance companies made their largest surpluses on younger drivers in a market with dwindling competition.
“In this report data has been used selectively, with the main statistics used to back up its assertions relating to 24 year old drivers, who are the oldest segment and pay lower premiums than other age groups. In fact findings** in the report show that young drivers under 20 are still paying almost 4 times the rate of older drivers when 2000 is compared to 2005, meaning there has been no change,” argued Mr. Doorley.
ENDS
For further information, please contact Clodagh O’Brien, Communications Officer at the NYCI on 087 781 4903 or 01 425 5955 or email communications@nyci.ie
Notes to Editors:
+ Report completed by PA Consulting Group – we recognise that this report may not reflect the views of the Department of Transport
*Private motor insurance statistics 2005
** Table 4.2 on page 30
National Youth Council of Ireland
The National Youth Council of Ireland is a membership-led umbrella organisation that represents and supports the interests of 51 voluntary youth organisations and uses its collective experience to act on issues that impact on young people.