Insured drivers facing extra €44 cost every year to cover uninsured motorists

Every year honest drivers have to foot a bill of around €40 each because of uninsured motorists on Ireland’s roads according to the findings of a new survey. It is thought that there are as many as 100,000 uninsured drivers using the roads, which is costing law-abiding motorists about €60 million a year.

John Casey, the head of the Motor Insurance Bureau of Ireland, the company that compensates the victims of drivers without insurance, said that around 5 per cent of motorists on the country’s roads were driving illegally without the necessary insurance. He warned that people who were ignoring the law would be chased through the courts if they were responsible for an accident.

The Motor Insurance Bureau (MIBI) paid out around €62 million in 2008 to people who had been involved in a collision with an uninsured driver. Although figures for 2009 have not yet been audited, it is expected that a rise in the cost of claims will be seen and Mr Casey said that the number of claims had risen over the past few years.

It is estimated that claims involving drivers without car insurance are adding €40 per premium held by law-abiding drivers every year. Although the MIBI is responsible for compensating motorists who have had an accident with an uninsured driver, all insurers pay into this fund, which is a cost borne by insured motorists. The MIBI are able to pursue uninsured drivers through the courts for damages, which is separate to any criminal proceedings that may be taken.

One insurance expert claimed that some motorists were uninsured due to an oversight, but a larger number were willingly ignoring the law to have motor insurance cover. The average insurance policy was €550, but as much as €44 of this figure was made up of the costs incurred for covering uninsured drivers.

There have since been calls for more roadside checks by the Gardai as statistically uninsured cars tended to be higher risk as the cars were often stolen or the vehicle was unregistered and had no National Car Test.

A recent survey which questioned 11,000 motorists revealed that one-in-three drivers had never been stopped by the Gardai and four out of 10 drivers never had to show their driving licence to a Garda.