Car insurance companies breaking the law?

yanogore

Hello,

I just run in to possible breach of the law by most of the car insurance companies. It seems that most of them are asking for the country where the licence was issued and depending on that they change the quote. So for example on one of the quotes by mistake I've chosen UK as an issuing country and my quote came up to 370 euro but when I realized mistake and selected country that the licence was actually issued in (one of the eastern European countries) cost of the insurance increased by over 80 euro. Later I've checked that on other insurance companies websites with similar result.

I've contact RSA about it and they say that it seems illegal as even if I change my driving licence to Irish one, which shouldn't matter, as by law I don't have to, my issuing country technically still will be foreign country (not UK or Ireland) so I will always be charged extra for that I didn't take my driving test in Ireland. So essentially for that I'm foreigner. I wouldn't mind taking driving test here again but I can't, as I already held a valid EU driving licence.

So because of discrimination of the insurance companies over last 7 years I was charged extra up to couple of thousand Euro. First year my premium was over 2100 so if percentage of the extra charge was the same as this year , I've probably paid over 400 extra.

How is it possible that they are allowed to do that?

coylemj

Why is it illegal?

They charge people who live in Dublin more because they are driving on busier roads so are more likely to be involved in an accident and there is a higher probability of the car being stolen or broken into than if they lived in a remote village in rural Ireland - is that illegal?

If they are charging more because you have a UK licence, they may be able to justify it on the basis that a person coming here from the UK may not be familiar with Irish road signs, or our (terrible) driving practices, or they may simply take the attitude that migrant workers have a higher accident rate so they levy a higher premium to reflect the higher risk.

As long as the individual is not being discriminated against based on his/her race or religion then I can't see how it's illegal.

the world wonders

coylemj wrote: »

They charge people who live in Dublin more because they are driving on busier roads so are more likely to be involved in an accident and there is a higher probability of the car being stolen or broken into than if they lived in a remote village in rural Ireland - is that illegal?

The difference being that Dubliners aren't a protected class under the Equal Status Act.

As long as the individual is not being discriminated against based on his/her race or religion then I can't see how it's illegal.

Discrimination on grounds of nationality is also illegal:

(h) that they are of different race, colour, nationality or ethnic or national origins (the “ground of race”),

(and "country that issued your driver's license" is a pretty good proxy for "nationality").

coylemj

the world wonders wrote: »

Discrimination on grounds of nationality is also illegal: (and "country that issued your driver's license" is a pretty good proxy for "nationality").

It's not a proxy at all.

Marcusm

You need to read MAdsL topics over on the Motors forum in relation to this. He has undertaken a lot of work on the topic.

johnnyskeleton

coylemj wrote: »

Why is it illegal?

They charge people who live in Dublin more because they are driving on busier roads so are more likely to be involved in an accident and there is a higher probability of the car being stolen or broken into than if they lived in a remote village in rural Ireland - is that illegal?

If they are charging more because you have a UK licence, they may be able to justify it on the basis that a person coming here from the UK may not be familiar with Irish road signs, or our (terrible) driving practices, or they may simply take the attitude that migrant workers have a higher accident rate so they levy a higher premium to reflect the higher risk.

As long as the individual is not being discriminated against based on his/her race or religion then I can't see how it's illegal.

The it would be a question of your habitual residence or length of duration in the state. A uk or polish citizen could have lived here for longer and know the road better than an Irish citizen.

It sounds to me like a significant issue on equality and eu competition law grounds. However if the OP wants to take it further he/she should first consult a solicitor.

GerardKeating

yanogore wrote: »

Hello,

I just run in to possible breach of the law by most of the car insurance companies. It seems that most of them are asking for the country where the licence was issued and depending on that they change the quote. So for example on one of the quotes by mistake I've chosen UK as an issuing country and my quote came up to 370 euro but when I realized mistake and selected country that the licence was actually issued in (one of the eastern European countries) cost of the insurance increased by over 80 euro. Later I've checked that on other insurance companies websites with similar result.

I've contact RSA about it and they say that it seems illegal as even if I change my driving licence to Irish one, which shouldn't matter, as by law I don't have to, my issuing country technically still will be foreign country (not UK or Ireland) so I will always be charged extra for that I didn't take my driving test in Ireland. So essentially for that I'm foreigner. I wouldn't mind taking driving test here again but I can't, as I already held a valid EU driving licence.

So because of discrimination of the insurance companies over last 7 years I was charged extra up to couple of thousand Euro. First year my premium was over 2100 so if percentage of the extra charge was the same as this year , I've probably paid over 400 extra.

How is it possible that they are allowed to do that?

So they quote one price for people whom got a licence in a country which drives on the right side of the road, and a different price for those learned tp dive on the left side.

Pro Hoc Vice

OP you raise an interesting question. Up until a few years ago everyone accepted that insurance companies could charge male drivers more than female, Europe said no.

In relation to your claim the Insurance companies will claim its acceptable for many reasons. But if you feel you are correct a complaint to the following http://financialombudsman.ie/ will at least start the ball rolling.

yanogore

Thank you for all the comments, I think that majority of you agrees with me that's not right. I'll see on Monday how much time and energy I can spend on that, but I have a feeling that something should be done. Thanks again.

Thoie

GerardKeating wrote: »

So they quote one price for people whom got a licence in a country which drives on the right side of the road, and a different price for those learned tp dive on the left side.

I think that's perfectly reasonable - people who got a license in a country that drives on the "wrong" side of the road may be more of a risk than people who drive on "our" side.

If that's what they're doing, it should be easy to check - if you put your license down as Japanese/Australian/Indian the prices should stay the same. If you put it as Canadian/German/Polish/Brazilian, the higher price should be charged.