Insurance won’t rise with boundary changes, says council

Insurance won’t rise with boundary changes, says council

CORK City Council has said the cost of insurance for homes and vehicles will not be affected by current county areas being subsumed into the city under the proposed boundary extension next year.

Fears had been expressed in areas in and around Ballincollig, with residents worried that their insurance rates would change as they may no longer be classed as rural areas.

Fianna Fáil TD Aindrias Moynihan, who represents Ballincollig, had raised the matter at the Cost of Insurance Working Group set up in 2016.

However, City Hall's director of corporate and external affairs Paul Moynihan has moved to quash fears ahead of the boundary change, which is expected to be signed into law before the Dáil takes its summer recess.

It will take effect from next year's local elections.

Mr Moynihan said that the changes will not lead to rising insurance costs based on newly attained city status for former county areas as insurance premiums are set by companies based on a set of multi-faceted criteria that has nothing to do with boundaries set by local authorities.

“We are on the record as saying that we have engaged with our insurance advisors and whilst the rate of insurance varies very considerably from location to location, the location of the city boundary isn't the determining factor in relation to the insurance costs in various areas,” he said.

“There are some areas that we are aware of in the county that would carry higher insurance premiums than some city areas, so it is not uniform and there are a lot of local considerations.

“Claims history and records in relation to crime would have an impact on house insurances so there's a myriad of factors that would impact on premium levels being set.

“There is a science in the insurance industry that looks at multiple different factors in assessing what the appropriate cost would be location by location. For cars, claims history and the age profile of a demographic are considered.

“If there is a variance it is scientific, insurance-based factors and risk factors that impact on assessment,” he added

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