# IFSRA tells us to shop around for car insurance...



## Brendan Burgess (10 Dec 2003)

IFSRA has launched its first survey of [broken link removed]

Mary O'Dea was on Morning Ireland telling us that they have discovered that we can get cheaper car insurance by shopping around. She does accept that the survey is only a snapshot at a point in time. 


I don't have any problem with such surveys, but are they a priority for IFSRA? There are so many other issues which they say they can't address yet due to lack of resources. These surveys are done regularly in the newspapers. Do we need IFSRA to tell us that it's worth shopping around?

Brendan


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## Freddie Kruger (10 Dec 2003)

This would seem to imply that she is aware of the 'premium matching' facilities that are available in the market at the moment.

While it is not her remit to question this policy, I feel that the Competition Authority might have a word or two to say about it.

The renewal premium that an Insurer offers to the client should be just that, and reductions should not be allowed if the client can source the policy cheaper somewhere else. It is a gimmick to retain business and reflects badly on the industry. 

Of course, if you can't find a cheaper alternative you just pay what the insurer thinks you can bear.


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## The Sober one (10 Dec 2003)

*IFSRA*

IFSRA just can't seem to find its sea legs at the moment and appears to be experiencing a bout of uncontrolled vomiting!


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## tedd (11 Dec 2003)

*Re: IFSRA*

IFSRA are really onto a win:win here. They found insurance prices vary significantly between providers and tell people to shop around. Of course if they found no significant variation in prices they would allege that insurers were acting in an anti-competitive manner and report it to the Competitiions Authority. 

I am all for consumer rights and shopping around but it does seem to be getting harder and harder for businesses to get it right! It's lose:lose for them.


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## daltonr (11 Dec 2003)

*Brokers*

Can anyone explain why it is that I need to shop around.  I was under the impression that that was why we had brokers.

Or do we have to call various brokers to get the best price.  Is there a gap in the market for an insurance broker broker?

-Rd


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## Brendan Burgess (11 Dec 2003)

*Re: IFSRA*

Hi Rd

That's a good question which is not addressed in the survey. The Consumer Choice surveys are much more informative. They found some individuals getting cheaper quotes that those provided by their brokers by going directly to the insurance companies. 

This is what I do:
Ring all 8 companies directly.
Check for a quote online as well - it's easier
Get a broker to check for you
If you are a member of a professional body, see if they have a scheme. I have stopped checking around as the scheme of the Institute of Chartered Accountants has always been the cheapest with the most benefits.

When there are only 8 companies, do you really need a broker?

ASSESSMENT OF THE IFSRA REPORT
I don't think it adds to the existing consumer information on the subject
It shouldn't be a priority for IFSRA - they have much more important things to do
They don't give phone numbers or websites for the companies.
I am told that a lot of people have done very well through AA car insurance. If that's true, they shouldn't be afraid to mention someone giving good value. 
They don't mention schemes for professional bodies.

Brendan


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## tedd (11 Dec 2003)

*Re: Brokers*

bb,
If you make 8 phone calls, check 8 websites, one professional organisation and a broker, I would estimate you are spending 2 hours investigating your insurance needs annually. I reckon your time is worth around 200 euro an hour (gross). Do you add the 400 euro of your lost time to your annual insurance quote?
t


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## Brendan Burgess (11 Dec 2003)

*Re: IFSRA*

Hi tedd

I do a slightly different calculation.

It actually takes me 2.5 hours in total - I am obviously not as efficient as your good self.

I charge my time to clients at around €100 an hour - thanks for the compliment though. So that's €250. 

I would have to pay 47% tax on the €250, so the net "cost" of my time is €132.50. So I do think it's worth shopping around. 

But I agree with you in principle - I have, in the past, shopped around for the best rate on a small forex transaction, and then I thought to myself "Get a life". But that thought quickly passed and so I continue to contribute to Askaboutmoney.

Brendan


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## rainyday (11 Dec 2003)

*Re: Brokers*



> Mary O'Dea was on Morning Ireland telling us that they have discovered that we can get cheaper car insurance by shopping around.


What next? Mary O'Dea advises us to carry an umbrella on a cloudy day?


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (11 Dec 2003)

*Re: IFSRA*



> Mary O'Dea advises us to carry an umbrella on a cloudy day?



Not so fast - IFSRA would have to convene a committee to investigate all aspects of umbrellas and cloud formations first before issuing the advice above with a disclaimer three months later.


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## Freddie Kruger (12 Dec 2003)

*Exercising Your Rights as A Consumer*

Brendan,

Do you apply these very same calculations to every purchase?


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## podgerodge (15 Aug 2005)

Burgessbrendan said:
			
		

> Mary O'Dea was on Morning Ireland telling us that they have discovered that we can get cheaper car insurance by shopping around. Do we need IFSRA to tell us that it's worth shopping around?
> 
> Brendan



It's great to see that nearly 2 years later Mary O'Dea is still telling us that shopping around can save money.  Sad to see IFSRA using Headline grabbing methods though that most advertisers would be slagged off for - in the papers and on their own website they bleat :

"Home insurance Cost survey shows savings of over €1,700"

Turns out this related to a "three-bedroom thatched cottage" between 2 companies quotes - one of which obviously was not interested in taking this business on. 

IFSRA seem to be ensuring that they have a headline grabber on all their surveys now.


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