Half of consumers in Cork are paying too much for their car insurance, according to new research. The figures, released by the Irish Brokers Association (IBA), indicate that nine out of ten brokers will provide the cheapest quote, but with an estimated 50 per cent of consumers in Cork going direct to insurers for their car insurance, the majority of these are likely to be paying over the odds. Findings from the study showed that significant savings could be made if consumers obtain car insurance from a broker rather than going direct.

The IBA undertook a market study and conducted a comparative analysis with a recent Financial Regulator survey of the car insurance market.

The IBA's local representative, Brendan Harrington, said: "Upon the review of the Financial Regulator's study a number of brokers from the South approached us as they felt that they could find better deals for consumers. This prompted us to conduct further research into car insurance premiums. Anyone who has taken out motor insurance will be aware of the huge variations in quotes given by providers. In the case of a person choosing to go direct to insurers, unless they are willing to spend the time scouring for the market for the best quote it is unlikely they will find the best deal. However, as the study reflects, those who engage the services brokers will invariably find the cheapest premium."

When results from both surveys were contrasted, it was found that in 14 out of 16 cases, the quotes received from brokers in relation to car insurance were cheaper than those that came direct from the insurer themselves. The Financial Regulator survey in contrast only looks at the quotes offered directly by insurers.

Anecdotal evidence suggests that the insurance market is tightening in terms of paying out on claims. "In addition to the cost benefit demonstrated in the survey, going to a broker also has the added benefit of expertise and experience in the event of a claim," said Harrington. "Insurance companies are trying to recoup losses and are scrutinizing each claim before they even consider paying out. We are seeing that more and more people are seeking broker advice on entitlements and help with communicating with insurance companies in the event of a claim."

The IBA survey appears to show that going direct to an insurance company will, ultimately, cost the individual more money.

Harrington said: "What many consumers do not realise and what we feel is important to communicate to them is that there are deals available to brokers in relation to car insurance premiums that consumers cannot get by going direct.

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