Making Cents: Returning emigrants are facing significant motoring challenges
A few weeks ago I wrote about issues faced by Irish drivers when working abroad but as the Irish economy continues to grow similar problems are cropping up for returning emigrants, writes .
People who left during the recession are now being tempted back by the recovery but are running into difficulties when it comes to getting back on the road.
Barry Aldworth of the AA said the insurance price hikes of recent years had been particularly severe on this group.
“The returning emigrant cohort are actually one of the groups which have been most affected by the increase in insurance prices,” he said.
While many insurers will recognise no claims experience earned abroad, the extent to which they recognise this experience will vary from insurer to insurer and depends heavily on the country in which the no claims experience was earned.
I contacted a number of Irish insurers but only Aviva confirmed what they would need to take into account driving experience from abroad.
“We accept no claims discount letters as proof of driving experience,” head of communications Cathy Herbert said. She said returning emigrants make up a very small proportion of their overall business but had some advice to offer.
“Please bear in mind that all documentation you gather abroad must be verifiable and should contain as much detailed relevant information,” Ms Herbert said.
“This documentation must have been issued by your insurer (not a broker), be on official company headed paper, be issued in your name as the policyholder and be in English.”
Documents also need to show the number of claims free years driving, details of any claims and show when the policy was cancelled/expired and the expiry date.
“The reason for these detailed validation and verification requirements is that there is a significant issue with fraudulent No Claims Bonus letters, particularly from abroad and it is important that we have the time to validate the No Claims Bonus with the previous insurer.
We would recommend that before taking out a policy with an insurer abroad, you get their agreement to provide you with this documentation at the end of your period living/driving abroad. Better still, if possible, you should use the services of an insurer that also operates in the Irish market.
Mr Aldworth agreed and said it was especially important for this group to shop around.
“Many people, especially if they’re less familiar with the Irish insurance industry, will opt to go to the insurer that their parents are with or a friend recommends, etc, and accept the first price they’re given,” he said.
“Putting in the time can help you save as different insurers will price differently depending on the risk factors that the motorist presents.
“Unfortunately, some returning emigrants do find themselves having to pay a high premium in their first year (especially if they had no prior driving experience in Ireland before they emigrated) but after building up a year or more of driving experience in Ireland they start to see these costs drop.”
Another issue that crops up is returning emigrants who learned to drive and attained their driving licence while abroad. The level of difficulty involved in changing over depends on the country where the licence was issued.
It is possible to exchange a licence issued by an EU member state, an EEA member state and certain other recognised states for an Irish driving licence. Other states include Australia, Canada and New Zealand.
The exchange of a licence may take up to three months as the original licensing authority will be contacted. For full details of the process and paperwork needed go to the National Driver Licence Service at www.ndls.ie.
If you are not coming from a recognised country you will have to apply for an Irish driving licence and go through the full driver licensing procedure.
You must first pass a driver theory test, apply for a learner permit, complete a course of Essential Driver Training (EDT) and pass your driving test in Ireland.
Deal of the week
After being hit by a wave of energy price rises since autumn 2017, there is finally some good news for householders.
A new supplier has entered the market and is promising savings for customers who switch for either or both gas and electricity.
Dublin-based Panda Power has a number of options for dual-fuel customers.
Billpayers can choose the discount bundle and get 22% discount off their standard unit rates or the cash back bundle and get €120 credit and a 12% discount off standard unit rates.
Electricity-only customers can also choose between an 18% discount or €75 welcome credit, and a 10% discount off standard unit rates, while gas only customers can avail of a 10% discount.
Existing Greenstar or Panda waste customers can also claim a €50 waste discount if they sign up to any dual fuel or electricity plans.
Terms and conditions apply, find out full details at pandapower.ie.
