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All hail the Scrappage Scheme for huge jump in new car sales?

July 20, 2010

Hi folks, alas it has been a while since we’ve been chatting, but at least on returning it’s to discuss some news of the more positive variety; namely the huge increase in volumes of new private cars licensed in June 2010, comparing year-on-year with June 2009. Briefly, there were 8,314 new private cars licensed in June 2010, compared with 4,833 in June 2009, an increase of a hefty 72.0%!. Full details are available from the Central Statistics Office but some quick, interesting snippets to mention include;

Of the 8,314 new private cars licensed in June 2010, 2,550 (30.7%) were petrol and 5,447 (65.5%) were diesel.
The highest number of new private cars licensed in June 2010, classified by make, was Ford (1,205) followed by Toyota (984), Volkswagen (944) and Renault (898).

So the love affair with Ford continues! On that first point, it appears that we’re now a diesel-guzzling bunch like our European counterparts, who have known the merits of diesel driving for many a year. This came as a slight surprise to me; I thought we were still very much ‘petrol heads’ here in this part of the world. Those reliable, economical and ever-more sophisticated diesel options have clearly convinced the petrol masses to switch over. Plus, the lower running costs and generally longer vehicle life are always going to be key purchasing factors on choosing diesel. The VW Golf Tdi , Ford Focus Tdci and such like are out in force…

The question remains as to what is behind this huge uptake on new cars? First of all, we are simply comparing against a very low base, namely the worst year in new cars sales (2009) in recent memory. It’s hardly that as a population at the moment we have handy extra disposable cash for conspicious consumption just sitting around in a biscuit jar or under the mattress. This year, dealerships have been offering better prices & financing deals in light of the massive slow down in new car sales over the past 18 months. There’s ample suggestion in the recent national media coverage regarding this increase in new car sales that it’s the Government’s car scrappage scheme which is the main driver of this increase. The fact that sales have remained strong into June this year (typically car sales ’tail off’ after the first 3 or 4 months of the year), compared to the same time last year, would suggest that the car scrappage scheme has had some impact, but exactly how much of this growth in sales can be attributed to it?

While the scrappage scheme clearly has contributed (e.g. note various manufacturers trumpeteering of the deals available on foot of it, such as Ford’s ‘Save €3,000′ with Car Scrappage Scheme), I personally haven’t seen it recorded by the CSO, SIMI or anyone else that there is clear statistical evidence of this. It would be useful to know exactly what percentage of these new private car sales to date in 2010 can actually be attributed to the scrappage scheme. I’m going to go hunting for a clear answer on that. I’ll keep you all posted on how I get on. We just wouldn’t want to be giving the Government all the credit without the facts, now would we!!??

Posted in Car Sales, insurance, Questions, Saving money | Comments Off

Calculating VRT Payments on an Imported Car

July 24, 2009

For those thinking of buying a used car, importing from Northern Ireland or the UK is an increasingly popular option. The VRT or Vehicle Registration Tax that you need to pay to the Revenue Commissioners can add up to one third onto the price, so it is worth figuring out in advance what you’re going to have to pay.

Photo by kevingessner (cc)

The rules for VRT changed in July 2008 and are now based on a combination of CO2 emissions and the open market value of the car. For cars registered prior to the change VRT is calculated based on a combination of the the engine size of the car and the market value.

This table outlines the VRT rates that apply for the different categories of CO2 emissions. The VRT paid is calculated as a percentage of the OMSP (Open Market Selling Price) for the car:

CO2 Emissions (CO2g/km)	VRT Rates
0 – 120g	14% of OMSP
More than 120g/km up to and including140g/km	16% of OMSP
More than 140g/km up to and including 155g/km	20% of OMSP
More than 155g/km up to and including 170g/km	24% of OMSP
More than 170g/km up to and including 190g/km	28% of OMSP
More than 190g/km up to and including 225g/km	32% of OMSP
More than 225g/km	36% of OMSP

The Open Market Selling Price for the car is a figure that Revenue determine. While there is an appeals process where you can challenge the Revenue on their estimation, you can only lodge an appeal once you have paid the initial amount demanded by the Revenue. Suitable evidence upon which to base your appeal might include a signed dealer opinion of the price or copies of advertisements by dealers in Ireland for similar vehicles.

Figuring out the CO2 band for a used car is not often straight-forward as in most instances the CO2 emissions are not identified in the advertisement for the car. These details are now listed on the registration cert for a car so you can ask the seller for the information. Alternatively you could head over to the car manufacturer’s website to check out the specifications for the car you are looking to purchase.

The most reliable place to go however to find out what the Revenue will intend to charge you is to their own VRT calculation tool on ROS.ie. Simply plug in the specifications of the car and they’ll come back to you with how much they’re going to charge you.

One last thing to keep in mind is that the Revenue insist that you must pay your VRT within 24 hours of bringing the car into the country. The revenue will give you your new car registration and you then have three working days to have the new reg plates put on your car. Although you’d wonder how well they police that given the number of foreign reg cars in the country on an ongoing basis.

Further information and relevant forms are all available on the Revenue website.

Posted in Questions, Saving money | 11 Comments »

Cheap Travel Insurance

July 3, 2009

We don’t sell travel insurance (yet) but lots of people ask us where they can get the best deal. Two friends of mine are going to the south of France for two weeks in July, so let’s see if we can get them a good deal on travel insurance online.

Photo courtesy of Lin Pernille ♥ Photography (cc)

Photo "Love is in the air" courtesy of Lin Pernille ♥ Photography (cc)

They are not planning any big trips for later in the year so we’re going to focus on single-trip travel insurance. Also, the guys already have private health insurance which helps to bring the cost down.

After a bit of a mosey over on the search engines this is what I came up with:

€17.98 with Multitrip.com:

MultiTrip give two options but the basic one here gives plenty of cover for the summer break. There are no major exceptions being highlighted. The excess (bit you have to pay) on a Cancellation claim is €80. This is MultiTrip’s full policy wording.

€29.54 with Justcover.ie:

JustCover are a little bit more expensive and draw particular attention to the fact that they don’t cover you if you or anyone “upon whose health the trip may depend” has been to hospital or to see a consultant in the last year. Their excess on Cancellation claims is €100. This is JustCover’s full policy wording.

€29.08 with 123.ie:

In order to get cancellation and lost baggage cover with 123 you need to take out the top level of cover. They have the same warnings as JustCover on the medical restrictions. Their excess on Cancellation claims is €75. Here is 123′s full policy wording.

€24.00 with AIB:

AIB are offering a 20% discount if you buy before the end of July which means that this policy would normally be €30. Good value today so. The excess for Cancellation claims with AIB is €65. Here is AIB’s full policy wording.

€26.90 with GetCover.com:

GetCover include as standard cover for “catastrophes” and also have a “mugging benefit” – nice. Their excess on cancellation claims is €85. Here is GetCover’s full policy wording.

Best value?

MultiTrip certainly appear to offer the cheapest price on the market for a decent standard level of cover. Unlike some of the others, they don’t draw particular attention in the quote process to the fact that they don’t cover you if your holiday is affected by a medical condition which pre-dates your travel. You need to dig into their policy documents to find that clause. This appears to be a standard clause on all of the policies and this is why it is important to read the full policy wording before making a decision.

Each product provides different levels of cover and while you cannot predict what might go wrong, you should be sure that you have adequate cover for the things you are most concerned about.

Posted in A guide to insurance, Questions, Saving money | 7 Comments »

What is a no claims discount?

June 26, 2009

Your no claims discount (often called your ‘no claims bonus’) is a reduction in your premium based on the number of years since you made a claim or a claim was made against you. Your no claims discount can be transferred from one insurance company to another and from one car to another.

At renewal time your old insurance company will send you a letter confirming the current level of no claims discount that applies to your policy. If you choose to switch insurers you will be required to send this letter on to your new insurer.

A no claims discount is earned by you where you are the policyholder on the policy. However, if you are a named driver on someone else’s policy and have not had any claims you will also be entitled to a discount if you switch. In this case you will need to get a letter from your old insurance company verifying that you were named on the policy and that you made no claims.

The maximum no claims discount is allowed if you had no claims in the last five years. If you have not had a claim for 10 years, you will still only get the five-year maximum. A full no-claims discount means your premium is 50% less than it would be if you had no discount.

Your discount may be reduced or lost if you make a claim or if a claim is made against you. This is the case even if you were not at fault – for example, if your car was stolen. If you lose your no claims discount and you were not at fault, your discount may be restored if your insurance company recovers its costs from the other person’s insurance company.

No claims discount protection is offered in order to protect your no claims discount even if you have a claim. No Nonsense offers a choice of two types of no claims discount protection. Our “No Claims Discount Protection” cover will result in your discount not being affected at all if you have one claim in a year less than €10,000.

Our “No Claims Discount Stepback Protection” cover means that in the event of a claim of any value your no claims discount will be reduced by a maximum of 20% points. So, if you had a 50% discount, it would be reduced to no lower than 30% in the event of a claim and so on. Our stepback protection also rewards you if you have been a customer for three full years without a claim. If you then make a claim there would be no impact on your no claims discount.

Posted in A guide to insurance, insurance, Questions | 7 Comments »

Why is No Nonsense so cheap?

May 29, 2009

“There must be a catch. What’s the catch?” says he. “There’s no catch!” says I.

A friend of mine was shopping around for his car insurance recently. He’s currently with one of those big foreign-owned insurance companies – you know the type; the ones that can’t decide what to call themselves so they change their name every year, presumably at huge expense to their customers…

Saving money isn't just for Christmas... (photo CC by Crowcombe Al)

Anyway, his renewal with them is €520 for Third Party, Fire & Theft on his 5 year-old auto. He poped over to NoNonsense.ie and for the same car and same cover is quoted €295. So, he rings me and the conversation goes something like this (I’ll call him Joe here to protect his identity):

Joe: “What’s the story with that quote I got on No Nonsense? Is it right?”

Me: “Sounds right based on what you’ve told me. Are you going to switch?” – that’s me with my sales hat on

Joe: “There must be a catch. What’s the catch?”

Me: “There’s no catch! If you don’t want the bells and whistles and just want cheap car insurance, then you’d be mad not to switch. Our price is over €200 cheaper than your renewal.” – sales hat on again

Joe: “Hmmm…”

So I get into explaining why No Nonsense can be cheaper than many of the other insurance companies.

Firstly the car insurance we offer is a what-you-see-is-what-you-get type of product. If you want third-party cover that’s what you pay for. Every other insurance product in the Irish market has a host of additional benefits bundled in. Some customers want that, but No Nonsense customers don’t. By taking out all the frills we can cut out all those additional costs that go towards things you don’t want or may never need.

Secondly this is an Internet-only product. We don’t sell through brokers or through any other intermediaries. This means there is no commission pushing up the costs. It also means that we don’t have big overheads or administration costs.

Another area where we keep the prices down is in the complex field of underwriting. As Howard pointed out in a previous post, we don’t get involved in “specialist underwriting” which is costly. This means that some people won’t be able to get a quote from us. We know that this can be frustrating sometimes but we do try and be as transparent as possible about this up front in our Assumptions.

One thing to remember is that we do pay out if you have an accident. The feedback from our customers who have been unlucky enough to need to make a claim is that we look after them and are very efficient. Other low cost insurance companies have developed a reputation in the past of not paying out and we’re very clear that we’re not in that bracket when it comes to customers with genuine claims.

Oh and finally, we don’t spend a huge amount on marketing (as you can see). We won’t be changing our name any time soon either, although I do quite like the roll-off-the-tongue sound of “No Nonsense Churchill Irish Insurance plc.”

Posted in A guide to insurance, About us, Questions, Saving money | Comments Off

Best deposit rates in Ireland – March 2009

March 6, 2009

UPDATE: OCTOBER 2009 – A lot has changed since I wrote this first post. For an up to date review of what’s currently on offer today, read this post.

As I start to write this I’m aware that the government is beavering away thinking up new schemes for that extra €4 billion their going to take from us this year.

On the off chance that some of us might be left with a few quid to spare here is a quick analysis of the best deposit rates available in Ireland.

Some things I’m looking for:

I want to save probably not more than €500 in any month, so am looking for the best rates for smaller more regular savings.
I want flexibility in the amount I put aside. I might set up a direct debit, but will probably see how I’m fixed each month before deciding how much to put aside.
I may want instant access to the savings, but am happy to live with a limit on this per year. Some institutions will give me instant access but only if I limit the number of withdrawals in a year.
I don’t want any minimum terms on the savings. I think that’s covered by the previous point, but just to be clear; I’m not sticking this away for 5 years as I suspect there may be a few rainy days within the next few years…

So, in reverse order of sounding like a good deal here’s what’s on offer:

10. Anglo Irish Bank “7 Day Notice Account” earns 2.5% AER
You’ll need to give them 7 day’s notice to withdraw. Interest is credited to the account on 31st December each year. I’m thinking I can do better than this.

9. Rabodirect.ie “Online Savings” earns 2.5% AER
No limit on the amounts saved and provides instant access to your money without any penalties. The website even acknowledges that this “isn’t the highest rate on the market”. I’m afraid that’s good enough for me to head elsewhere.

8. An Post “30 Day Notice Account” earns 3% CAR
This is a compound annual rate which is calculated daily and credited at the end of the year. No fees or charges. Don’t think I could wait the 30 days to withdraw, so that’s probably not an option for me anyways.

7. Halifax “Flexi Saver” earns 4% AER
No monthly lodgement restrictions, but you need to keep the balance to less than €10,000 in the first year. Instant access to the funds and no penalties. Interest is calculated daily and applied four times per annum.

6. Permanent TSB “21 Day Notice Regular Savings” earns 4.5% AER
I could probably live with the 21 day notice period to withdraw my money if the rate was a bit better. Maximum monthly deposit is €1,000 and the maximum balance is €50,000.

5. Ulster Bank “Regular Savings” earns 4.75% AER
Interest is calculated monthly on this one. You can save up to €500 per month and withdraw your money whenever you need it. Not bad.

4. AIB “Regular Savings Account” earns 5.25% AER
Allows you to save anywhere between €10 and €300 per month. You can withdraw anytime you want without penalties. Interest is calculated daily and deposited twice yearly. Getting better.

4. EBS “Optimise Flexible Savings Plan” earns 5.25% AER
This looks a little better than the same rate from AIB as it will allow me to put in up to €1,000 per month. Instant access is given and there are some guarantees that the rate will not reduce below the ECB rate (1.5% now???).

2. First Active “Regular Saver” earns 5.4% AER
You can save up to €1,000 per month and have a maximum in the account of €100,000. Instant access is provided and there are no fees or charges. Now we’re talking.

1. Bank of Ireland “EasySaver” earns 7% EAR
Allows you save up to €500 per month, and €5,000 per annum. Anything greater than €5,000 and the EAR reduces to 3%. Instant access and 4 withdrawals per annum. No fees or penalties. Interest is calculated on a daily basis and applied once annually. This one seems like a no-brainer unless anyone can point out the catch??

Note that lots of terms and conditions will apply to the figures and notes above and you should read all these carefully before making any decisions. All of the rates are variable and I’ve compared like for like as best I can. The AER/EAR/CAR figures I believe are all comparable. Oh, and I’m not a financial advisor.

Don’t forget that the Deposit Interest Retention Tax (DIRT) is currently 23%. This means that you’ll have to pay 23% of any interest you earn to the government. They get you every way

Posted in Questions, Saving money | 7 Comments »

Driving in Snow and Ice

February 6, 2009

We don’t use snow tyres and chains in Ireland, so when the heavy (if occasional) snow or frost kicks in our roads tend to grind to a standstill. Most of us have no choice but to head out, either to work or school on mornings like today, so here are a few things to keep in mind if you are setting out in your car:

Drive slowly – your braking ability is the first thing to suffer on snow and ice. The slower you move the shorter your braking distance and the less likely you are to collide with another car, a bicycle or a pedestrian. Obviously you will need to leave yourself extra time to get to your destination. Don’t rush and you’ve a better chance of getting there safely.
Keep your distance – again, because your braking distance is longer, leave more room than you usually do between you and the car in front. Give yourself enough space to brake if the guy ahead of you brakes suddenly – at least twice as much as your normally leave. Tyre experts Bridgestone suggest leaving 4 car lengths for every 10mph you are driving. So if you are doing 20 in the city, leave 8 car lengths between you and the car in front.
Take corners smoothly – brake smoothly as you approach a corner and accelerate once you are through the turn. Brake well before you reach the corner and crawl through it.
Take off in second gear – if you feel the wheels spinning as you try to take off from a standing start in first gear, try taking off in second gear as this will give you more grip. Ease your foot off the clutch gently to avoid that wheel-spin.
Brake with care – If you have ABS brakes then you should press the brake and hold it as the brake system will kick in automatically and manage a skid. With standard brakes press on the brake pedal until the wheels begin to lock, then release just enough pressure to get them rolling again.
Follow the tracks of other cars – If you can leave your trip till later in the morning or longer after it has snowed or frozen over, then other cars will have cleared the snow and ice. If you are crossing lanes, do so slowly and keep your wheels as straight as possible.

Driving long distances in bad weather conditions can be very demanding and tiring. Take regular breaks, pulling in to a safe location and stopping for a rest. Above all; stay alert, drive slowly and smoothly and don’t panic. Safe driving.

Posted in In the news, Questions, Safe driving | 1 Comment »

What to do after a car accident………

December 18, 2008

We get many questions regarding the course of action a motorist should take following an accident.

Even the most minor car accident can be a very distressing experience. It is obvious that if an accident is serious; resulting in injuries or a major traffic disruption, it is advisable to contact the Emergency Services. Your safety and the safety of road users in the vicinity is paramount. The Road Safety Authority offers some very good advice in this area.

Photo owned by beej55 (cc)

When it comes to minor collisions, there are many preconceived views regarding the procedures to be followed. For fear of invalidating their insurance cover or losing a possible court case, many drivers stick rigidly to long-held notions which are not always correct. An example of which includes calling the Gardai after collision for their attendance at the scene.

It is common for the Gardai to refuse to attend the scene of an accident unless there are injuries involved or the collision is causing a major traffic disruption. Generally; the Gardai do not get involved in minor property disputes such as in a motor collision and will advise the drivers to sort the matter out by themselves. They will however take details of the accident, which can be presented to insurers at a later date.

Another misconception is that the cars must be not moved until the Gardai are called. Often this only serves to block traffic and cause major disruption on the road. Depending on the accident, the information obtained by insurers in the accident report form, and from witnesses, is generally sufficient to establish liability. Such an act will not invalidate your insurance cover.

Although in a perfect world insurers would like the Gardai to attend all accidents, and the accident scene to be preserved, they understand that is impractical and in the majority of cases the stated evidence is sufficient.

Admitting liability at the scene
Most motor insurance policies contain a condition which requires the insured not to admit liability after an accident. The principle behind this is to ensure that the insured does not prejudice their legal position if a dispute should arise later. Drivers are often in a state of confusion directly after an accident and their recollection of the events can be impaired. It is wise to hold your tongue until you have had time to gather your thoughts. If you do admit liability at the scene it is not necessarily conclusive, but it may not help your position if you realise later that you were not at fault.

If the Gardai are present at the accident, simply explain to them what happened and this report will be passed to the insurer. If they are not present, advise the other party that you will give full details to your insurer and make a report to the Gardai.

Get all the details
The most important action to take after an accident is to get all the relevant details of the parties involved. These include:

Name, Address, Telephone/Mobile No. of Third Party
Registration of the Vehicle/Vehicles involved
Insurance Details- Policy Number, Insurance Company, Expiry Date

These three items are vital. Insurance details can be retrieved from the third parties insurance disc, located on their windscreen. In some cases, the insurance of the other party may not be valid and hence obtaining the vehicle registration will allow the Gardai to trace the vehicle in such circumstances.

Other information may help your case; such as names and addresses of witnesses, driving conditions, time of accident, lighting, road markings, speed limits etc. In addition, many insurers advise you to keep a disposable camera in the car. If you’re that well prepared, take photos of the post-accident position of the cars before they are moved. You may also be able to take these photos on your phone and later email them on to your insurer. This offers excellent evidence surrounding the circumstances of the accident.

The information as outlined above is requested by the insurance company, typically over the phone, so have the details to hand In some circumstances you will be requested to complete an Accident Report Form. If you have any additional information which cannot be transmitted over the phone or the report form(such as photos), contact your insurer and they’ll advise accordingly.

It is vital that you gather all the relevant details before any party leaves the scene of the accident.

Reporting the Accident
Where the Gardai do not attend the accident, visit the nearest Garda Station as promptly as possible and give full details of the accident. You may be required to give both your details and that of the other party or parties involved. This will include names, addresses, registrations and insurance details. You may also be required to give details of any witnesses at the scene.

It is a condition of most insurance policies, to report the accident promptly. Contact your insurer immediately and provided them with all details as requested. Ensure that all claim forms are completely accurately and timely. This will allow your insurer deal with the claim as efficiently as possible.

In Summary

Unless there are injuries involved, Gardai will be reluctant to attend the scene of an accident.
Where it presents no danger to yourself or any other motorist and the accident is of a minor nature, move the vehicle if it is causing a major traffic disruption or presenting a danger to oncoming traffic.
Get full details of all the parties involved
Report the accident to Gardai and present them with both your own details and those any other party involved.
Report the accident to your insurer as promptly as possible. At this point the insurer is likely to refer you to their recommended repairer.

Posted in A guide to insurance, Questions | Comments Off

Introducing No Nonsense car insurance

July 18, 2008

Wondering what insurance to go for? Here’s a No Nonsense approach to help you choose.

What is No Nonsense car insurance all about?

We at No Nonsense car insurance aim to provide value for money car insurance without sacrificing on service.

What does that mean?

Well, we hope to provide you with all the cover you need at a price you will be happy to pay.

All the cover I need?

Yes, we ensure you have all the necessary legal cover to get you on the road at the lowest cost possible.

Okay, but how do you do this?

We strip out the covers which are often bundled into your Policy and allow you to select just the covers you want for your needs and within your budget.

What do you mean by ‘covers’?

Well, your car insurance policy can come with optional extras, that sometimes you may not need, but raise the price of your policy regardless. We allow you to pick only the covers that are of use to you and you can see exactly how much your premium changes.

I’m still not sure I understand.

Okay, so you need car insurance as a legal requirement to allow you to drive. With No Nonsense you can choose from third-party only up to comprehensive cover.

These policies will cover you in the event of an accident or something going wrong with your car, depending on the level of cover you choose.

You can then choose from the following extras:

No Claims discount protection

Windscreen cover

Car breakdown assistance

Personal property in your car

Replacement of your car if under one year old

Extension to drive other cars

Car hire expenses in the event of an accident

The Irish Financial Regulator‘s site It’s your money has listed all of the above as benefits to check for when you’re buying or comparing car insurance.

Who are the people behind No Nonsense? Are you legitimate?

No Nonsense car insurance, a unique style of low cost car insurance, is a trading name of FBD Insurance plc which is regulated by the Financial Regulator as a non-life insurance company. FBD is a member of the Irish Insurance Federation and subscribes to its voluntary code of conduct.

FBD has been operating in Ireland since the late 1960s. The Registered Office of FBD Insurance Plc is at FBD House, Bluebell, Dublin 12. You can find out more about FBD on their website.

What do I need to be eligible for insurance? Can I get insurance if this is my first time driving?

Like all insurers, No Nonsense makes some assumptions about you when it offers you a quote for your insurance, some of these being that you or your named drivers:

Hold a full, learner permit/provisional Irish/EU licence and have been resident and working in Ireland or the UK for the past three years

Have never been disqualified from driving and have never been convicted or have a prosecution pending for any offence

Have no more than four penalty points on your current driving licence

Have not been refused insurance or renewal of insurance or had any special terms or conditions imposed by any insurer.

If you are under 25, you have had no claims in the past five years. If aged 25 or over, you have had no more than two claims in the last five years

Do not suffer from any medical condition that would impair your ability to drive

We also assume that the vehicle to be insured:

Is only used for social, domestic and pleasure purposes and by the Insured in person in connection with his/her business or profession and has not been converted, adapted or modified in any way.

You can find the full list of assumptions on the quote section of the No Nonsense website.

Sounds good, how do I go about getting the insurance?

Ah, an easy one. Just go to the No Nonsense website, request a quick quote and follow the pages from there. If you have any questions you can always check the FAQ or get in touch with us.

Tags:FAQ, how-to, Questions
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