Penalty points adding hundreds of euro to motor insurance premiums

Penalty points are adding hundreds of euro – in some cases as much as €1,000 – to the cost of motor insurance in the Republic, a new cost-comparison survey has revealed. The study by Peopl Insurance found that as little as three penalty points can lead to a 10 per cent extra charge in motor insurance, known as loading, while 10 points could see a driver’s premium double.
More than half a million drivers have penalty points on their licence, of which 492,244 have three penalty points or more.
Peopl Insurance trawled the market for the cheapest quotes available to the driver of a 1.6 litre Hyundai Tuscon with an address in Tullamore, Co Offaly. The cheapest quote for a 30-year-old with no penalty points was €965.14. This rose to €1,061.66 when three penalty points were added and to €2,029.62 when 10 penalty points applied.
The cheapest quote for a 45-year-old in the same vehicle with no penalty points was €890.54, rising to €979.59 with three penalty points and to €1,778.31 with 10 penalty points.
Peopl Insurance, which conducted the survey to highlight the financial implications of penalty points on a licence, urged Irish drivers to clean up their driving habits and play their part in making Irish roads safer and ultimately save hundreds of euro in the process.
With road fatalities now almost 20 per cent higher than they were this time last year there is a concern that road safety messages are simply not hitting home. “One phone call while driving could end up costing you 10 per cent more in motor insurance,” said Paul Walsh of Peopl Insurance.
“Insurance companies typically raise premiums for drivers with three or more penalty points, though this limit can differ between providers,” he said. “Many drivers don’t realise how easily they can accrue three points. The top penalty point offences include speeding, holding a mobile phone while driving, failure to obey traffic lights, driving without reasonable consideration, and driving as an unaccompanied learner drivers or without a valid NCT,” he said.
“Most of these offences carry a penalty of three penalty points, with the only exceptions being driving without reasonable consideration or driving as an unaccompanied driver, where the number of penalty points incurred is two,” Mr Walsh said. “Even minor offences like not displaying an L or N plate as a learner or novice driver can earn you two points, with just one more needed to reach the critical three points.”