Worries over car insurance costs higher than last year

Seven in 10 motorists are more concerned about insurance costs now than they were last year.

A new survey of more than 7,000 Irish motorists from AA Ireland has found 71% of people agree the cost of cover is worrying them.

It says Covid-19 has forced more motorists to use a car in certain situations, due to limited space on public transport.

Conor Faughnan, AA Director of Consumer Affairs, said the industry must do all it can to keep costs down for motorists, particularly in light of the pandemic.

He said: “You can understand that the issue of insurance prices is not at the forefront of the government’s mind in the current context, but the insurance industry must ensure they are doing their bit to help people through what is an unprecedented event.

“The story of high insurance costs is not a new one and while there was some data from the Central Bank last year to indicate that certain cohorts were starting to see a reduction in their premium this was certainly not being seen across the board. 

Furthermore, just a few months later we find ourselves in a completely different economic world and if the industry doesn’t work with government and other stakeholders to tackle high insurance costs then we face the risk that uninsured driving may start to climb once again.

The survey also found that 58% believe that the issue of insurance reform has fallen down the government’s priority list.

Mr Faughnan said: “Right now, the Government’s sole focus is rightly on managing the easing of Covid-19 restrictions, as well as the long-term economic impact of the outbreak. 

“However, in time when we begin to return to normal, issues which have been pushed to the side-lines by the Coronavirus will re-emerge. 

“While housing and the state of our economy will be the main priorities, it’s clear that people believe more needs to be done to help reduce the costs of their commutes to and from work.”

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