The rates being offered to young drivers by insurance companies, particularly to those with low levels of experience, have increased by an average of over 50% since 2014 and up to 90% in some cases according to a study carried out by Irish insurance brokers, Coverinaclick.ie.
Coverinaclick.ie say that new young drivers are definitely faring worse than those who have already had insurance in place for the last few years. They say that typical zero-experience starter premiums were €2,000-€2,500, but €3,500-€4,000 is now becoming all too common for a 12 month policy - particularly from Irish based Insurers.
Managing Director at www.coverinclick.ie, Jonathan Hehir says, "There’s much talk about 15-20% increases for motor insurance, but young drivers are being hit particularly hard as more insurers pull back from this sector of the market. Premiums are facing “upward only” increases so motorists need to minimise these increases where and when possible.
Motorists dealing with brokers that have access bigger UK/ London insurers will fare better when it comes to rates as Irish based insurers continue in their attempts to recover losses. There’s a subtle but quickening trend in the market now to place business with UK based insurers such as Lloyds, because Irish-based insurers simply cannot offer competitive rates at the moment."