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Insurance Premiums to Drop- Due to Covid-19

Insurance Premiums to Drop- Due to Covid-19

14th Dec 2020

Has the only benefit to Covid- 19 been our lack of motoring? Less driving is equal to less claims according to the Irish Independent saying that,

ONE benefit from the deadly outbreak of the corona-virus could be lower-cost motor insurance.This is due to insurers having lower numbers of claims because more people working from home and not commuting by car or driving as much generally.Some Irish insurers are said to be noting huge drops in the volumes of claims. It coincides with a period during which insurance has been falling anyway.”

Jonathan Hehir of expects premiums to continue fall for Irish drivers.

“Much has been said about the lower claims volumes expected as a result of significantly fewer cars currently on the road. This gives insurers some incentive to lower their premiums and compete for business based on price.“This is good news for motorists, of course. It could be just the start of falls to come, in terms of premiums. Overall claim costs for 2020 will almost certainly be lower as a result of the lockdown.”

The Irish Independent has reported how motorists are being charged hundreds of euro extra for the exact same cover under the dual-pricing system being perpetuated by insurers.

Dual pricing is one of the reasons many drivers are surprised with higher premium renewal quotes than they paid the previous year even though they do not present a greater risk.

The only way to avoid dual pricing rates is to shop around, use a broker or do it yourself, and get the best deal from your Insurer. Make sure to not over estimate the value of your car to avoid paying a higher premium.

I know we are all optimistic for 2021 to be a better year and hoping with these predictions it definitely will be for the Irish Motorist.