Policy
Young Adult Rates
From 1 May 2015 the requirement to be a dependant of a policy holder or a full-time student dependent on parents was removed. Prior to this, insurers were permitted, but not obliged to provide a 50% or larger discount to full-time dependent students, aged between 18 and 23. This meant that students were experiencing very large premium increases.
In the examples below, it can be seen that the introduction of Young Adult rates provides for a sliding scale of maximum chargeable rates up to age 26, thereby ensuring the phasing-in of full adult rates and easing the effect of the dramatic price increase experienced up until now when student rates no longer applied (usually after the age of 21 years).
Insurers retain discretion whether or not to provide young adult rates, although where an insurer chooses to provide young adult rates, they must provide the full range of rates within the specified bands. All insurers are offering young adult rates on many of their products.
Examples of Young Adult rates in Practice
|
Age |
% of full adult rate |
Full adult Premium €800 |
Full adult Premium €1000 |
|
Age 18 to 20 |
Up to 50% |
(not more than) €400 |
(not more than) €500 |
|
Age 21 |
51%-60% |
€408 – €480 |
€510 – €600 |
|
Age 22 |
61%-70% |
€488 – €560 |
€610 – €700 |
|
Age 23 |
71%-80% |
€568 – €640 |
€710 – €800 |
|
Age 24 |
81%-90% |
€648 – €720 |
€810 – €900 |
|
Age 25 |
91%-100% |
€728 – €800 |
€910 – €1,000 |
|
Age 26 |
100% |
€800 |
€1,000 |
This new approach aims to ensure the phasing-in of full adult rates and ease the effect of the dramatic prices increase experienced when student rates no longer apply. As the introduction of ‘Young Adult’ rates are age-based rather than student-based, it removes the single very large increase in premium rates that occurs for most young adults after their 21st birthday.