Wednesday 7 December 2016

Motorists suffer as insurance up by 34pc

Published 13/05/2016 | 02:30

The surge in the cost of motor cover is hitting young drivers, and those with a claim or penalty points, hardest (Stock image)
The surge in the cost of motor cover is hitting young drivers, and those with a claim or penalty points, hardest (Stock image)

The cost of insuring a car has gone up again - even though inflation is falling.

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New figures from the Central Statistics Office (CSO) show that the cost of motor insurance surged by 3.4pc in April. Compared with a year ago, the cost of motor cover is up 34.5pc.

Drivers who got cover for €500 last year now face paying an additional €172, calculations based on the CSO figures indicate. This is despite an overall fall in inflation.

The surge in the cost of motor cover is hitting young drivers, and those with a claim or penalty points, hardest.

Sharp rises in the cost of insurance have prompted drivers to organise a protest outside the Dáil.

Organisers are asking for drivers to form a convoy to the gates of Leinster House in Dublin in July.

The demonstration is being organised by group that calls itself Ireland Underground. It is calling for drivers "to stand together and push back against this injustice".

Rising insurance costs are in contrast to prices generally, which were down 0.1pc compared with a year ago.

The annual inflation rate has now been negative for three consecutive months. Lower fuel prices, air fares and car prices are the main factors for the drop in inflation. However, rents bucked the trend with an annual rise of 9pc.

Merrion Stockbrokers' economist Alan McQuaid said that consumers, faced with such large rises in insurance, were not convinced inflationary pressures were as weak as the headline numbers suggest.

Irish Independent

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