Ireland vehicle driving rules are very strict and it is compulsory to have vehicle insurance to drive a car. Failure to produce a driving license when driving a vehicle is a serious offense in Ireland and the driver should pay fine and even may be disqualified from driving a vehicle.
Car Insurance in Ireland depends on the following factors which would help to reduce the insurance premium. Some of the main conditions are
- Value of the vehicle
- Profession and purpose of use
- Place of vehicle parking
- Voluntary Excesses
- No claims policy
Why is insurance premium so high for an inexperienced driver
Car insurance becomes expensive in Ireland because of Section 5(2) of the Equal Status Act of 2000. According to this Act, the premium can be increased or decreased according to the potential risk a driver possesses.
This risk of the driver is equated to the driver’s experience as it is considered that an experienced driver has less chance of committing an accident than a young driver.
In the recent times, the claims for an accident in Ireland have become considerably high and the Irish courts have started favoring the driver in settling the claims even though it was found that the accident was caused by the driver’s mistake. In order to gain higher settlements more and more people are approaching the courts and the judges have justified the plaintiff by awarding higher compensation to them.
When the Insurance companies started losing more and more of the claims settlement the only way the companies they could compensate the losses was to increase the premium using the clause of experience as a loophole.
Using the experience clause, the insurance can be increased or decreased as per the insurance companies wish. The experience criteria have greatly helped the Insurance companies in off-setting some of their losses but in turn, have affected thousands of innocent young drivers.
Many young drivers who have taken up the driving profession for a living have found their income considerably dwindling because of the higher premium outflow to the insurance companies.
Insurance is a business for the firms who are running the show and as they do not like to do business at a loss have considerably increased the insurance based on experience. So, Car insurance Ireland is favoring the experienced drivers by lowering their premium and this subsidy favoring the experienced driver is falling on the inexperienced driver.
How to reduce the insurance for an inexperienced driver?
One of the main factors that will be helpful in reducing the insurance premium of your car would be your driving experience. Every Insurance company in Ireland will ask for an existing policy in your name or will inquire whether you had driven under any other person without any accident. This will help to considerably reduce the insurance premium for your car policy.
In Ireland you cannot drive without insurance, so can everyone afford to pay the high premium until they gain experience and reduce the premium after gaining sufficient experience. It will not be possible for all to pay high premiums.
But, as the insurance is very high in Ireland for an inexperienced driver it is better than you get added as a named driver on your parents or relatives car insurance policy.
It is the best way to gain experience without any risk as your parents and relatives will also have an extra driver without any expense. This will help the young driver to gain experience without losing much in the way of paying a very high premium.
Large car insurance premiums in Ireland have affected many persons and till everything settles down it is advisable to follow safe driving to gain experience and lower their premiums.