Thursday 18 July 2019

Quarter of Irish parents forced to help children with cost of motor insurance

(Stock image)
(Stock image)
Ian Begley

Ian Begley

More than a quarter of Irish parents have assisted their children with the cost of car insurance, according to a new survey.

In response to an AA Young Driver Car Insurance survey, 26.6pc of participants said they had to provide a significant level of financial assistance to one of their children to cover the cost of insurance when they were learning to drive.

A further 7.14pc indicated that they had provided a lesser degree of financial assistance to at least one of their children.

Conor Faughnan, AA director of consumer affairs, agreed that learner drivers have suffered more and more from exorbitant rates in recent years.

"Insurance costs for learner drivers have always been on the higher end of the scale, with the expectation that over the course of your entire driving career these costs would even off as you gained more experience," he said.

"Unfortunately, in the last couple of years the cost of insurance for those on a learner's permit has increased significantly and at a higher rate than the increases seen by the general driving population."

Mr Faughnan added that resolving some of the wider issues in the industry would leave companies in a better position to carry the risk associated with learner drivers.

"While some forward steps, such as the more widespread use of automatic number plate recognition by gardaí have been made, many of the most problematic issues have been ignored or kicked into touch to an extent," he said.

The Irish Independent recently reported that insurance companies have enjoyed a profits surge from covering homes, drivers and businesses as part of their increasing business portfolio.

Irish Independent

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