If you're one of the 250,000 or so owners of a car that is 14 years or older you will now be unable to take out new cover from two of the country's largest insurers; Allianz and Aviva. Existing policyholders will not be affected, although it remains to be seen if the companies will be increasing premiums charged on these vehicles going forward.
The blanket refusal of cover comes irrespective of whether the car holds a current NCT. According to both firms, cars of this age carry a higher risk and are more likely to be used to make fraudulent claims. This somewhat contradicts statistics, for example, in 2012 of the 3,200 fatal or serious-injury collisions that occurred just 0.2 per cent indicated that the vehicle's condition was a contributory factor.
Commenting on the move, the Department of Transport said that it was "regrettable" but added that there are still 30 companies offering cover in the market at present. One such company, AXA Insurance, said that it has one of the widest acceptance criteria in the market does not restrict vehicles providing they have a current NCT.
Any car that is over 10 years old must currently undergo an annual NCT, as detailed in our post on preparing cars for the NCT. According to the Road Safety Authority, the average pass rate for cars aged four years was 75 per cent in 2012 compared with 42 per cent for ten-year old cars.
Anything else?
An official statement from Aviva said; "Aviva's recent decision not to provide a new business quote for cars 14 years or older is based on our own claims experience for this segment. By not taking on more of this risk type, we are protecting our broader customer base and our ability to offer sustainable and competitive motor insurance premiums in Ireland. As a responsible insurer, we have an obligation to take account of our claims and underwriting experience to ensure we are there to protect our customers in the long term. We constantly review the performance of our policies and adjust rates and our acceptance criteria according to claims experience."
It went on to say: "It's important to point out that anybody currently insured with Aviva who has an older car will continue to be insured by us and any Aviva customers who decide to buy an older car will also continue be covered by us."