Bank move into motor insurance to spark price war
Published 09/10/2013 | 04:00
MOTORISTS may be able to drive a better deal on their car insurance after Bank of Ireland said it was entering the market and Aviva promised big discounts.
Increased competition will be good news for drivers, as Bank of Ireland promised discounts of up to 25pc. The move comes after Aviva said it would offer a 25pc discount for families with a second car.
Bank of Ireland (BoI) claimed the new policies would be "competitively priced". The policies will be underwritten by RSA Insurance.
And customers will be able to pay their premiums monthly without incurring an extra charge. Insurance brokers said this could prove to be a huge benefit as paying by instalments can add 23pc to the cost of the premium.
Motor cover sold by RSA's 123.ie has a 21pc surcharge if the premium is paid monthly, according to the National Consumer Agency.
BoI said it would offer customers of the bank discounts of up to 25pc.
This is made up of a 20pc discount for existing bank customers, while home insurance customers will get a further discount of 5pc.
There will also be free breakdown cover in Ireland.
Other features include EU cover for up to 45 days and breakdown cover in Ireland.
The 'prestige' option offers extra cover such as no claims discount protection and replacement locks.
Customers will also be able to customise their cover by adding extra protections – such as increased amounts for car hire and personal belongings, cover for satnavs, games consoles and child seats, and a top-up of €1,500 in the event of a total loss, and comprehensive cover while driving other cars.
Managing director of Bank of Ireland insurance services Eamon Slevin said: "We are launching these new car insurance products as a direct response to market demand."
And Aviva said customers could save 25pc on their second car insurance policy.
The insurer claimed it was the first to offer a multi-car discount in the market.
Dermott Jewell, of the Consumers' Association of Ireland, said the latest developments may result in drivers getting better deals.
It comes after the head of the state body that doles out motor insurance compensation said there was no justification for a rise in premiums despite a rise in the amount of compensation paid out.