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AA says more drivers opting for comprehensive insurance

According to the AA, 81.86% of motorists are now opting for a comprehensive policy, which is up f...
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Newstalk

16.10 7 May 2017


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AA says more drivers opting fo...

AA says more drivers opting for comprehensive insurance

Newstalk
Newstalk

16.10 7 May 2017


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According to the AA, 81.86% of motorists are now opting for a comprehensive policy, which is up from 76.25% in 2016.

Meanwhile, new data from the AA shows that just 18.11% of AA customers are opting to take a third party, fire and theft policy compared to 23.74% in 2016.

Speaking about the AA's new figures, Director of Consumer Affairs Conor Faughan said "While 2016 saw a drop of about 2% in terms of those opting for comprehensive cover, likely as a result of rising premiums, it appears that more and more motorists are now opting for this higher level of cover.

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"the current rate of those opting for a comprehensive policy is the highest seen in the last four years."

He continued by saying "While we have no way of knowing what the future holds when it comes to insurance prices, it does appear on the back of this analysis that people feel a little more economically secure than they have in previous years and are, as a result, opting to take out additional cover at a higher rate than seen in the past."

Despite the rise in demand for comprehensive car insurance cover, motorists who may be trying to lower their premium costs are being advised to ensure they are purchasing the correct level of cover to meet their needs.

Young drivers

It seems there has also been a decrease in the amount of young drivers applying for provisional licenses.

Faughan said "In recent months we’ve seen a reduction in the number of young people applying for provisional licenses and a big factor in this is the cost of learning to drive and insurance.

He finished by saying "While getting on the road has always been a front loaded cost, with average premiums reducing as you get older and more experienced, for first time drivers a third party policy is likely to be more affordable and suitable to what they require."

 

Breakdown of type of cover purchased by AA Car Insurance customers by year:

Type of cover (Motor)   2014       2015       2016       2017

Comprehensive:          78.83%  78.30%  76.25%  81.86%

Third Party:                 0.01%    0.02%    0.01%    0.03%


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