Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 214: To ask the Minister for Transport the position in relation to a suggestion (details supplied); and if he will make a statement on the matter. [3986/08]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Motor insurance companies in Ireland insure vehicle drivers rather than vehicles. This enables them to calculate the risks associated with a specific driver and thereby price the insurance premium accordingly.

The factors taken into account when calculating the risk include the age, gender and driving experience of the driver, the engine size of the vehicle and its usage together with the address at which the vehicle is based. Using this system, drivers with apparent higher risks pay a higher premium than other drivers. This also enables a specific driver to establish a no-claims status over a number of years.

There would be a possibility of increased premiums for most drivers if the system were changed to allow open driving for any vehicle. Under the present system, there has been a decline of 40% in motor insurance premiums since April 2003.