We pay hundreds more for insurance than the rest of the Unit

 

Tuesday, Mar 31,2009, 10:58:43 AM   Click:

Belfast Telegraph
Published: Sunday, March 29, 2009
By Symon Ross

CONSUMERS in Northern Ireland are torn by having to pay hundreds of pounds more for insurance than the rest of the United Kingdom, according to new research.

The Consumer Council of households in Northern Ireland said, on average, nearly 300 pounds of shell per year in premiums compared to households in Great Britain and, for some, this figure is much higher.

The results, which is part of the new Council report on the cost of coverage in the province, led the body of consumers' rights to request an investigation into why consumers have such a raw deal when it s question of insurance.

"The car, contents and buildings insurance market is clearly not working for consumers. Compared to Britain, households are paying almost 40% more, leaving consumers worse 160m pounds a year. While we are all affected, some households are particularly hard hit, "said Eleanor Gill, Chief Executive of Consumer Council.

She said that research revealed that consumers pay 84%, or 282 pounds, more on average for motor insurance in Northern Ireland.

Households with the car, contents and building insurance in rural areas pay 62%, or 362 pounds, and low-income households pay 48%, or 345 pounds, more than in Britain.

Breaking the results by region, research has shown a low income household in Belfast, led by a person paying 816 pounds for insurance compared to 575 pounds in Glasgow, while a household headed by a young person in a zone of low-income Fermanagh pay £ 1366 pounds compared to 777 in rural East Anglia.

"A recurring frustration for consumers is that many offers of insurance provided with the tag" not available in Northern Ireland. "Our research confirms that we have less choice of insurance providers - the maximum number for Tender offer car insurance here was 15 compared to 51 insurers in Britain, "said Gill.

"Another worrying aspect of this research is that one third of consumers have not insured their homes. When asked why, they tell us they can not afford it or have not obtained this round. There is a potential disaster waiting to happen for these households, if something goes wrong, if there must be a desire to increase consumer protection. "

Approximately 30% of consumers here are not contents insurance and 36% have no building insurance.

Ms. Gill said there are opposing views on why insurance costs, so much more.

"The problem lies with the practices of insurance companies, the legal system, the consumer or any combination thereof. Further investigation is urgently needed, especially at a time when all households and businesses trying to keep costs, "said Gill.

"We welcome the associations of insurers and brokers and the Law Society to continue working with us as we try to understand why insurance costs more. Consumers need insurance that is fair, affordable and matches their needs. To this end, the Consumer Council focuses on promoting more switching and greater penetration of insurance protection for consumers. "

Despite higher costs and fewer suppliers, the Board believes that it is possible for people to save money when buying insurance to tour, rather than to renew an existing policy.

Originally published by Symon ROSS sross@belfasttelegraph.co.uk.

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