Michael Lowry (Tipperary North, Independent)
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Question 434: To ask the Minister for Transport his strategy to address the exorbitant cost of insurance for young drivers; if he will undertake a review of the insurance reform programme; if he will limit the extent to which insurers use statistical information as the basis for premium priced insurance for younger drivers; and if he will make a statement on the matter. [5177/06]

Martin Cullen (Waterford, Fianna Fail)
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The Deputy will be pleased to know that the cost of motor insurance has fallen again in January 2006 to a new low of 78.2 index points compared to 108 index points in April 2003 when the Government's insurance reform programme commenced. This represents a 27.59% decrease in the cost of motor insurance to policyholders. Average premia are now back to 1999 levels. Given the continued success of the programme, I do not think that a review is warranted at this stage.

The main rating factors motor insurance companies use in assessing a motor insurance premium are as follows: the power to weight ratio of the car; the insurance policy proposer and any drivers; area of use or garaging; use of the vehicle; and cover required. I cannot see what alternatives are available to motor insurance companies other than using statistical data to assess risk. I would welcome the Deputy's suggestions as to how this could be achieved. The National Roads Authority publishes annually road traffic collision statistics, which are available in the Oireachtas Library. These statistics can also be downloaded from the website www.nra.ie.

The report in respect of 2004 indicates that driver error accounted for some 88% of all contributory factors to collisions where such factors are identified and confirms the trend that young male drivers between the ages of 17 and 25 are one of the groups that are overrepresented in collision statistics.