Nissan is responding to Ireland’s high cost of motor insurance by providing two year’s free insurance to new car buyers.

Figures released by the CSO today show that the cost of motor car insurance has risen by 69.2% over the last three years and that it is now 25.2% more expensive to insure a car than it was this time last year.

The ground-breaking Nissan offer, which is aimed at making the cost of running a car more affordable, is available to motorists ordering any new Nissan passenger car before the 31st December 2016.

Nissan is the first car brand in Ireland to recognise the impact of exorbitant insurance premiums  and to respond to the concerns of consumers.

“Consumers are justifiably concerned about the rising cost of motor insurance premiums. Families are unable to afford running a second car and in some cases motorists, especially those under the age of 30, have had little choice but to stop driving,” said James McCarthy, CEO of Nissan Ireland.

“Nissan and the Irish Motor Industry are deeply concerned that there is no will or appetite, from any quarter, to address the issue. In the absence of a satisfactory response Nissan has taken the initiative in leading the way to make driving more affordable,” he added.

“Our two year offer insulates consumers against price hikes in insurance premiums in 2017 and 2018. This is good news for consumers and for the 12,000 people who buy a new Nissan every year,” he said.

“The cost of this offer does not come cheaply to Nissan and it certainly eats into our margins. We see it as an investment in the future of our business. Drivers who buy Nissan stay with Nissan and we are confident that we will attract and retain new customers,” explained. Mr. McCarthy.

New car buyers interested in availing of the offer must be 26 years old, have a full driving licence, no more than three penalty points and a minimum of three years no claims bonus. Insurance does not extend to commercial use.

Mr. McCarthy revealed that Nissan took advantage of economies of scale with its insurance partner. “Taking account of the inherent safety features included in Nissan vehicles new drivers are not seen as an individual but as part of the profile of the 12,000 people who purchase a new Nissan each year and we are passing that on to the consumer,” he explained.

He called on the government and insurance industry to take action to respond to the high cost of insurance premiums and to follow Nissan’s lead in making driving more affordable.

“The regulatory response in the UK succeeded in reducing the cost of insurance within three years. The cost of car insurance in Ireland has risen by almost 70% over the same period,” said Mr. McCarthy.

“We need a regulatory response and measures such as those introduced in the U.K. to control fraudulent claims and to ensure that soft tissue injuries are examined by an independent body of medical consultants,” he added.