Car Insurance - Ireland and England Compared

Apply for online car insurance - UK - USA

The main difference between car insurance in Ireland and England:

In terms of car insurance is the difference in the cost of both compensation and lawyers fees in the two countries. Compensation can be up to eight or nine times higher in Ireland than in England, and legal fees will be three to four times higher. Therefore, Irish insurers face higher risks than English insurers do.

The higher legal costs are because barristers are used more often and formal proceedings are four times more likely to be commenced. It also takes far longer for settlement to occur in Ireland than in England. In Ireland it usually takes up to six offers before a settlement is reached, whilst in England the average is four. This is further emphasised by the fact that the starting point in Ireland (the first offer) is on average 81% of the final settlement and the plaintiff starts at 179% of the final settlement. In England the corresponding figures are 89% and 117%.

In 2001 – a survey of English and Irish insurance claims handlers showed the differences in the way they dealt with the uncertainty of the litigation and settlement process. This was in the form of a questionnaire that contained three vignettes.

1. Your insured has collided with the rear of a plaintiff’s vehicle. The plaintiff is a 45 year old woman complaining of neck pains, which a doctor says will stop within 18 months. How much would you settle for?

2. The same as no.1 but e for the injury’s value, the second scenario brings in doubt the possible pain level, bringing uncertainty about compensation. The third scenario adds uncertainty to the merits of the case and how the claims handler’s certainty in the witness affects the settlement.

3. A witness comes forward to say the plaintiff’s car reversed into your insured’s car. Depending on the certainty of the witness (from 90% to 20% how much would you settle for, if at all.

The first scenario sets a base line for the injury’s value, the second scenario brings in doubt the possible pain level, bringing uncertainty about compensation. The third scenario adds uncertainty to the merits of the case and how the claims handler’s certainty in the witness affects the settlement.

In the first vignette, the Irish claims handlers said they would settle on average for 4 times the amount the English would settle for. In the second vignette, the Irish claims handlers were more likely to settle even though there was medical doubt. In the third vignette, the Irish claim handlers were prepared to settle regardless of even a high level of certainty in their witness. This is because of their desperation to keep the case out of court with all the expense that it entails.

Contact | Disclaimer | Sitemap | Advertising |

Subscribe in a reader

© The Pink Fridge Online Magazine 2008