Motor insurance costs in Ireland are seeing a considerable increase on account of penalty points, some as high as €1,000, according to a price-comparison survey recently conducted by Peopl Insurance. The report revealed that just three penalty points could result in a motor insurance hike of 10%, known as loading. Furthermore, 10 penalty points might cause a driver’s premium to double.
Over half a million Irish drivers currently carry penalty points on their licence, among them, 492,244 have three or more. Through the research, Peopl Insurance compiled the lowest available market quotations for a 30-year-old driver of a 1.6 litre Hyundai Tucson based in Tullamore, County Offaly. The least expensive quote for a driver with no penalty points was €965.14, which surged to €1,061.66 with the addition of three penalty points, and a stark increase to €2,029.62 with 10 penalty points.
For a 45-year-old driving the equivalent vehicle with no penalty points, the lowest quote was €890.54. This price escalated to €979.59 with three penalty points, and further increased to €1,778.31 with 10 penalty points.
The survey was designed by Peopl Insurance to underline the monetary consequences of having penalty points on one’s licence. They therefore encouraged Irish motorists to improve their driving behaviour in an effort to make Irish roads safer and potentially save hundreds of euro in insurance costs.
Due to a near 20% increase in road fatalities compared to this time previous year, there is growing worry that road safety warnings are not being effectively received. Paul Walsh of Peopl Insurance said, “A single phone call while driving could increase your motor insurance by 10%. Premiums commonly rise for drivers who have three or more penalty points, although this can vary amongst insurance companies.” He added that many drivers are unaware of how easily they can attain three points, with common penalty point offences including speeding, using a mobile phone whilst driving, ignoring traffic lights, driving indifferently, and driving as an unattended learner driver or without a valid NCT.
Mr. Walsh highlighted that the majority of traffic violations result in a three-point penalty, with the exception of driving with insufficient consideration or driving without supervision, both of which incur a two-point penalty. He went on to explain that even minor infractions, such as neglecting to display an L or N plate as a beginner or inexperienced driver, could lead to a two-point penalty. Thus, a single additional infraction could push a driver to the crucial three-point threshold.