Revolut, the online bank, has unveiled its plans to introduce car insurance services in the Irish market, potentially providing relief to consumers burdened by the cost of the insurance. This move is anticipated to foster healthy competition, a factor known to lead to reduced prices and better offerings for customers.
As per the Central Bank, the average cost of car insurance policies in Ireland stands at €578, which is a notable reduction of €135 compared to 2017. Furthermore, there was a 5% drop in motor insurance premiums during the first half of the previous year, in comparison to 2021.
While the standard advice of shopping around for insurance is widely known, there are additional considerations to take into account when obtaining coverage, particularly concerning insurance add-ons. Insurance companies often offer various add-ons that can enhance coverage, and it’s essential for policyholders to ensure they are included in their policies.
Jonathan Hehir, the Managing Director of InsureMyCars.ie, emphasizes that the necessity of insurance extras varies based on individual circumstances, budget, and risk tolerance. These add-ons differ between insurers and policies, making it vital to compare options and understand their long-term financial implications.
Hehir notes that add-ons extend coverage beyond the basics, catering to specific customer needs. Given the array of options available, selecting the right ones can be challenging for policyholders.
For instance, one popular add-on covers driving other people’s cars, albeit usually limited to third-party coverage. However, this can be costly and might not be available for certain demographics like young drivers.
Another prevalent add-on is windscreen cover, encompassing repair or replacement expenses for a vehicle’s windscreen. While typically available for comprehensive policies, it can be beneficial without affecting no-claims bonuses.
Breakdown assistance is another frequently offered add-on, providing immediate aid in case of vehicle breakdowns. Services like jump-starting, towing, flat tire changes, and fuel provision are often included. This feature is either free or moderately priced on most policies.
Protecting a no-claim bonus is also a common add-on. This assists in maintaining lower insurance premiums, sometimes being offered free of charge. However, there’s usually a cap on the number of claims allowed while retaining the bonus, frequently set at one claim per policy year. Exceeding this limit can impact the no-claims bonus.
Navigating these additional coverage options can be challenging, and prior research is crucial before committing to any extras. Policyholders should thoroughly understand the terms and benefits of add-ons to make informed decisions regarding their car insurance coverage.
Read the entire article in the Irish Examiner.