A recent study that we performed has shown that there is a dramatic increase in motor insurance premiums for drivers with penalty points on their license. Peopl. Insurance is about making sure the community is getting the best coverage at the best prices possible. That means understanding just how your circumstances affect your insurance premiums.
For this study we looked at the insurance premiums for a 30 year old driver of a 1.6 litre Hyundai Tuscon with an address in Tullamore, Co Offaly. The cheapest quote with no penalty points was €965.15. With just three penalty points this rose to €1,061.66, about 10%. With 10 penalty points the cheapest quote was €2,029.62, more than double the original cost.
Repeating the study with a 45 year old driver resulted in quotes of €890.54, rising to €979.59 with three penalty points and to €1,778.31 with 10 penalty points. Again increasing by 10% and roughly doubling the cost respectively.
What Does That Mean For The Consumer?
Firstly it means that the 492,244 drivers that currently have three or more penalty points on there license are paying significantly more than necessary. Bad driving habits have resulted in much higher premiums.
This highlights the importance of safe driving and ensuring good habits. With road deaths up 20%, we hope that this will give an extra incentive to drivers to be careful on the roads.
Many drivers may not even realise how easy it is to accrue three penalty points. With many road offenses such as holding a mobile phone being enough to hit that critical number one mistake could cost you hundreds in increased premiums.
Most important for the consumer is that is gives them a route to the lowest possible premiums. By developing safe and responsible driving habits, you are able to keep your premiums to a minimum. If you currently have no penalty points then you are in the best financial position. But if you already have three then remember that additional penalty points could mean another jump in premium prices of over 90%
What Does Paul Say?
Peopl. CEO Paul Walsh had this to say on the study, “Insurance companies typically raise premiums for drivers with three or more penalty points, though this limit can differ between providers” adding that “Even minor offences like not displaying an L or N plate as a learner or novice driver can earn you two points, with just one more needed to reach the critical three points”.
We urge drivers to take special care on the roads to not only save money on insurance premiums but also to save lives and families. With roughly 15% of Irish drivers dealing with increased premiums due to penalty point increases it’s clear that we still have a way to go.