Michael Lowry (Tipperary North, Independent)
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Question 1072: To ask the Minister for Transport the measure he will take to reduce the cost of motor insurance in view of the fact that motor insurance for persons under 25 remains at an exorbitantly high rate; and if he will make a statement on the matter. [29639/06]

Martin Cullen (Waterford, Fianna Fail)
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In accordance with EU law, I have no direct responsibility in relation to setting motor insurance premiums. Insurance cover is provided by licensed companies based on actuarial or statistical date or other underwriting or commercial factors.

My Department, however, is taking the lead role in implementing the recommendations of the Motor Insurance Advisory Board (MIAB). This forms the bedrock of the Government's Insurance Reform Programme initiated in 2002 and I am pleased to say that the reform programme has been very successful to date. In particular, we have been very successful in reducing the cost and increasing the availability of motor insurance. Between April 2003 and August 2006, overall motor insurance premia have fallen by some 28.5 percent.

Unfortunately, the cost of insurance for young drivers has not fallen in line with the general downward trend in the cost of insurance. This is mainly due to the proportionally higher incidence of collisions involving young drivers and, in particular, young male drivers. Statistical and research data by the insurance industry have shown that young male drivers are high risk category and are priced by the industry accordingly. However, my officials are aware of a number of companies who offer special discounts to young drivers based on those drivers fulfilling certain conditions. In accordance with the best consumer advice, I would advise young drivers to shop around for the best price that suits their particular circumstances.