Insurance rates have been rising for a year and a half now. Motor premiums are up 7.5% in the past 12 months, with home insurance up 14%. Health insurance is up 24%.
This is despite the fact that second-hand car prices and the number fatalities on the roads are well down, and the cost of rebuilding a house has plunged.
However, the move to appoint administrators to Quinn Insurance has raised fears that premiums will continue to rise. Here are some ways to fight back.
Motor insurance:
- Drivers should buy their policy on the internet as there are big discounts for those who complete the process online.
- Most drivers prefer to have comprehensive cover, but it makes more sense for those with low value cars to choose third party or third party fire and theft cover.
- Accept an excess on your policy. An excess is the amount of any claim you have to pay yourself before the insurance company pays the balance. You will not be able to claim for amounts less than the excess figure.
- Security features such as an alarm or an immobilizer will reduce your premium.
- Scour the market for the best value. Regular surveys carried out by the Financial Regulator show that drivers nationwide can potentially save between €200 and €1,800 on their motor insurance if they shop around.
Home insurance
- Make sure you are not over-insured. The cost of rebuilding a house has fallen by up to 14% in the past two years. The market value of the house is not relevant when it comes to rebuilding costs. For a guide to rebuilding costs check out www.scs.ie
- Some insurers have had fewer claims than others. Shopping around can save you several hundred euro.
- Make sure the contents is not over-insured. Prices falls across the economy mean it will be cheaper to replace a carpet if there is an accident.
- You can get a discount if you have no previous claims; there is somebody over 50 living in the house; the residents of the house are non-smokers; the house has an alarm; you have a smoke detector installed; and you have another insurance policy with the same company.
Tip: Many insurance companies automatically increase the amount of your buildings and contents cover when they renew your policy each year. This is called indexation. Check the amount of cover you have to make sure you are not insured for too much or too little.
Health insurance
VHI has introduced the One Plan to stop people switching away from it. This is just €710 a year compared with €907 for Plan B. The introductory price is €639 to the end of April.
However, there is a €125 excess per claim for most private hospital treatments, and less maternity benefits and less cover for emergency treatment overseas. This plan will really only suit young people making few claims.
Other good value plans include Quinn’s Essentail Plus (€730 for adults) and Aviva Level 2 Hospital - €780 per adult.
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