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Drivers interested in idea of long-term car insurance

By May 19, 2023No Comments

Almost half of drivers would support the introduction of some sort of long-term motor insurance, a new survey has found.

More than one in every four respondents said they would be interested in hearing more about the concept of car insurance that lasts for at least three years or more.

A quarter of those who took part in the survey said if they could, they would take out such insurance, the concept of which is being explored in some countries.

“Although it has yet to be introduced here, it is a definite possibility in the years to come, and it seems there is an appetite within the market for the option,” Paul Walsh, CEO of Peopl Insurance, which commissioned the survey of 1,000 people nationwide which was conducted by iReach.

“A longer-term policy would give the policy holder the security of knowing their rate won’t go up for a certain number of years, and it would also lessen the chances for motorists to allow their cover to inadvertently lapse.”

“A possible downside however could be that customers could lose out on the price drops they might enjoy when renewing their cover annually.”

The survey also found that a fifth of Irish adults don’t own a car or drive one, with those aged 18 to 34, or living in the capital or working class least likely to have one.

Car ownership was found to be highest in Connacht and Ulster where 93% owned a car, compared to 63% in Dublin.

It also found that car ownership levels between men and women are largely the same.

The research also discovered that more than half of those aged between 18 and 24 don’t drive or own a vehicle – compared to the national average of 81%.

“Between car insurance, motor tax, and the NCT, those in their teens and early twenties could face a bill running into the thousands in their first year of driving – on top of the one-off cost of buying a car,” said Mr Walsh.

“The costs of getting a car on the road can therefore be prohibitive for many young people.”

“Of course, environmental reasons could be a factor in the one in five people who don’t own a car, as younger people and others are more environmentally-aware today.”

Article Source: Drivers interested in idea of long-term car insurance – RTE

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