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)