Menu
01/09/2011
Soaring Cost Of Car Cover Slammed
News that the Consumer Council is to ask the Office of Fair Trading to examine the car insurance market in Northern Ireland has been broadly welcomed.
South Down MLA Jim Wells has supported the move and said last night: "Motorists in Northern Ireland are very well aware of the high costs of running a car here.
"Combined with high fuel costs the price of insurance is prohibitive for many, particularly young drivers.
"The average premium in Northern Ireland now sits at over £900, and the gap between Northern Ireland and the rest of the United Kingdom has actually increased over the last number of years.
"For these reasons it is important that the insurance market here is scrutinised carefully and any action possible taken to assist motorists," he said.
"Compensation arrangements in particular must be focused upon, because with higher payments here this obviously pushes up premiums for motorists, and it is likely that costs associated with this are acting as a barrier to greater competition within the sector."
He added that the processes within England and Wales not only mean that the payouts in such compensation cases are lower, but also can be dealt with in the small claims court.
"Whilst the so-called 'compensation culture' may well be prevalent right across the United Kingdom nowadays, the insurance arrangements currently mean that it is more profitable here in Northern Ireland," he insisted.
"I would encourage people to participate in the exercise being launched by the Consumer Council and input their experiences of obtaining car insurance.
"It is also an issue which I would hope that the [Stormont] Justice Committee will be looking into in more detail in the future to ascertain what action we can take to ensure that consumers receive a better deal."
The Consumer Council has asked the Office of Fair Trading (OFT) to examine the car insurance market in NI because premiums in Northern Ireland remain much higher than elsewhere in the UK.
Research by the consumer group found that premiums were, on average, 84% higher. The average price for car insurance in NI is now more than £920.
The Council had previously asked Stormont to investigate, but has now gone to the Office of Fair Trading.
The Consumer Council said they had carried out research, which showed that premiums had risen by over 70% from two years ago.
(BMcC/GK)
South Down MLA Jim Wells has supported the move and said last night: "Motorists in Northern Ireland are very well aware of the high costs of running a car here.
"Combined with high fuel costs the price of insurance is prohibitive for many, particularly young drivers.
"The average premium in Northern Ireland now sits at over £900, and the gap between Northern Ireland and the rest of the United Kingdom has actually increased over the last number of years.
"For these reasons it is important that the insurance market here is scrutinised carefully and any action possible taken to assist motorists," he said.
"Compensation arrangements in particular must be focused upon, because with higher payments here this obviously pushes up premiums for motorists, and it is likely that costs associated with this are acting as a barrier to greater competition within the sector."
He added that the processes within England and Wales not only mean that the payouts in such compensation cases are lower, but also can be dealt with in the small claims court.
"Whilst the so-called 'compensation culture' may well be prevalent right across the United Kingdom nowadays, the insurance arrangements currently mean that it is more profitable here in Northern Ireland," he insisted.
"I would encourage people to participate in the exercise being launched by the Consumer Council and input their experiences of obtaining car insurance.
"It is also an issue which I would hope that the [Stormont] Justice Committee will be looking into in more detail in the future to ascertain what action we can take to ensure that consumers receive a better deal."
The Consumer Council has asked the Office of Fair Trading (OFT) to examine the car insurance market in NI because premiums in Northern Ireland remain much higher than elsewhere in the UK.
Research by the consumer group found that premiums were, on average, 84% higher. The average price for car insurance in NI is now more than £920.
The Council had previously asked Stormont to investigate, but has now gone to the Office of Fair Trading.
The Consumer Council said they had carried out research, which showed that premiums had risen by over 70% from two years ago.
(BMcC/GK)
Related Northern Ireland News Stories
Click here for the latest headlines.
28 February 2017
Car Insurance Premiums Set To Soar
The Ministry of Justice has announced a new way of calculating compensation payments which could see average car insurance premiums soar by up to £75 a year. Lord Chancellor Liz Truss announced plans to cut the discount rate to -0.75% from 2.5%.
Car Insurance Premiums Set To Soar
The Ministry of Justice has announced a new way of calculating compensation payments which could see average car insurance premiums soar by up to £75 a year. Lord Chancellor Liz Truss announced plans to cut the discount rate to -0.75% from 2.5%.
26 January 2024
DUP Calls For Action On Car Insurance Price Increases
The DUP has called on the UK government to investigate car insurance price increases, especially for young drivers, in Northern Ireland.
DUP Calls For Action On Car Insurance Price Increases
The DUP has called on the UK government to investigate car insurance price increases, especially for young drivers, in Northern Ireland.
08 March 2022
New Legislation To Prevent Increase In Motor Insurance Premiums
New legislation to prevent an increase in motor insurance premiums has completed its Final Stage in the Assembly, Infrastructure Minister Nichola Mallon has announced. Motor insurance is a devolved matter for Northern Ireland.
New Legislation To Prevent Increase In Motor Insurance Premiums
New legislation to prevent an increase in motor insurance premiums has completed its Final Stage in the Assembly, Infrastructure Minister Nichola Mallon has announced. Motor insurance is a devolved matter for Northern Ireland.
15 April 2011
Quinn Barred From Own Insurance Firm
A leading Irish entrepreneur is to loose control of the insurance business he personally founded after it ran into financial problems. Sean Quinn and his family will no longer have any role in the management of the Quinn Group following a restructure.
Quinn Barred From Own Insurance Firm
A leading Irish entrepreneur is to loose control of the insurance business he personally founded after it ran into financial problems. Sean Quinn and his family will no longer have any role in the management of the Quinn Group following a restructure.
01 March 2010
Pensions Review Reduces Qualifying Period
Pension reforms just announced are to make the overall system fairer.
Pensions Review Reduces Qualifying Period
Pension reforms just announced are to make the overall system fairer.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
