Sunday 4 December 2016

Same-sex couples missing out on hundreds of euro in savings on car insurance

Published 18/05/2015 | 02:30

Same-sex couples are losing out on hundreds of euro in savings on motor insurance
Same-sex couples are losing out on hundreds of euro in savings on motor insurance

Same-sex couples are losing out on hundreds of euro in savings on motor insurance.

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This is because they do not realise they can get discounts on their insurance as committed couples, according to AA Ireland.

Motor insurance is normally cheaper for married couples because those in committed relationships tend to be at a lower risk of accident, Conor Faughnan, director of consumer affairs at AA Ireland said.

"But that applies every bit as much for a same-sex couple as for a traditional marriage, so many gay couples are losing out because it simply never occurred to them to ask or to state that they are a couple," he said.

Discounts of between 10pc and 20pc for a typical motorist for the same insurance cover could be available, according to figures from the AA.

Adding their partner to their policy could net them cash savings of between €100 and €300.

Insurers define a partner as "your husband, wife, civil partner or a person you live with on a permanent basis as if you are married", he said.

"Absolutely this applies to same-sex couples."

News of the discounts comes as the latest official figures show that motor insurance premiums shot up by an average of 16pc in the ast year. This means a premium that cost €500 last year will now be €580. Insurers have been hiking premiums for months now after a failed price-war led by RSA Ireland and its online operation 123.ie meant they sold policies too cheaply, and did not put sufficient reserves aside to cover claims.

Risk

FBD said last week it was cancelling its dividend to shareholders. Its share price fell sharply after it said it had lower premium income in the first three months of this year.

Mr Faughnan said: "Motor insurance prices are rising rapidly this year and many motorists are shopping around. The AA is advising motorists to be sure to tell their insurer about their relationship status."

Insurance was all about risk, Mr Faughnan said.

"Insurers will look at all sorts of factors including your job, your age, driving history, where you live and your personal circumstances. Gender does not count anymore because of European rules that came into force in 2012. But relationship status certainly does."

The AA warns that you should never exaggerate or lie to an insurer to get a cheap price on your premium because you risk invalidating your insurance.

"Two same-sex friends who share a house or an apartment could be tempted to call themselves a couple just to get a discount, but that is a bad idea," said Mr Faughnan.

Irish Independent

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