A recent analysis has revealed that most Irish motorists will be hit with significant fines if they don’t pay off their insurance.
The Insurance Bureau of Ireland (IBNI) has released figures showing that a total of 3.9 million motorists will have their car insurance premiums reduced by more than €4 billion in 2016-17.
The IBNI has analysed the costs of premiums in the Irish car insurance market and found that most people will be penalised for not paying for their insurance by up to 50%.
The analysis has shown that the number of motorists who are not insured is likely to be higher, with about one in three motorists not paying their insurance bills.
The average Irish consumer pays an average of €1,085 per year on insurance.IBNI Director of Policy and Strategy James McCarthy said the figures showed the Irish insurance market is facing a major shortfall.
He said the number one issue facing the Irish consumer was the amount of time they spend with the insurance company, which is estimated to be between 10 and 15 hours a week.
The Irish consumer also has a lot of discretionary spending to pay for insurance.
This spending is not covered by the insurance companies’ premiums.
The figures showed that between April 1 and December 31, 2015, the average amount of travel time was around 30 minutes a day for consumers, while for non-car owners, that amount increased to around 60 minutes a week during the same period.IBSI said it had been inundated with requests for information about the statistics and was working with insurance companies to provide additional details on the issues facing consumers.
The data has come as the Irish Government prepares to launch the next round of legislation on the future of auto insurance in Ireland.
The Government is expected to introduce legislation in the next few weeks to implement a number of reforms to the insurance market.
The legislation will also make it easier for consumers to claim compensation from insurance companies for any damages that result from their vehicles, including collision damage.IBNIC will be releasing a special edition of its weekly newsletter on the issue later this month.