The State's largest motor insurers have signalled that the days of high premium increases are over.
The introduction of the penalty points system last year, and the resultant decline in the level of traffic accidents and related claims, should result in premium savings for motorists, a number of the companies stated yesterday.
One company, Quinn Direct, already claims to have reduced motor premiums by 10 per cent since the beginning of this year.
Six of the large insurance companies, contacted by The Irish Times, said that all trends relating to the levels of accidents and claims were "moving in the right direction".
The State's largest insurer, Hibernian, announced a 24 per cent increase in profits this week and has said that it is considering freezing motor premiums.
Some of the companies which were contacted said that inflation and other expenses might still be passed on to motorists, but they felt that premiums had probably peaked.
Based on figures for 2001, the last period for which full data is available, Hibernian collected €452.5 million in premiums. AXA was next, with €393.9 million, followed by Alliance (€186.6 million), Eagle Star (€151.4 million), Quinn Direct (€147.2 million), FBD (€136.7 million) and Royal Sun Alliance (€124.4 million).
The Irish Insurance Federation said that the penalty points system had been a very significant catalyst in driving down premiums.
A spokesman for the federation, Mr Martin Long, pointed out that the insurance companies had lost money in their motor divisions in the late 1990s. "Because of that, premiums increased a lot, but many companies are now finding that they are doing much better. They are, and will be, passing that on to the motorist."
While the penalty points system had "worked well", other measures needed to be taken if current trends were to be sustained, Mr Long warned.
A "book of quantum", laying down set compensation levels for specific injuries, would help, and the establishment of a new Garda traffic corps would also have a positive impact, he said.
A spokeswoman for Quinn Direct said that the company had recognised a reduction in outlay in respect of insurance costs generally and it had already reacted with its own pricing structure.
"On average, our motor prices have reduced by 10 per cent since the new year, and in some categories by more than this," she said. "We have also reduced our commercial rates in the same period and we anticipate that this trend will continue so long as the frequency of claims continues to reduce and if progress can be made in respect of court awards and payouts."
Another industry source said that the insurance companies had been "very impressed" with the performance to date of the Minister for Transport, Mr Brennan. "He went out on a limb and said he wanted a penalty points system quickly, and he got it. Not only have there been fewer deaths on the roads, the level of accidents is down, and ultimately motorists are going to feel the positive effects of that in their pockets."
