Saturday 18 November 2017

Motorists to pay up to €300 more per year for car insurance, Dail told

Drivers have been urged to be aware of the dangers of driving through flooded areas
Drivers have been urged to be aware of the dangers of driving through flooded areas

John Downing Political Correspondent

MOTORISTS face paying up to €300 per year more for car insurance, the Dáil has been told.

Fianna Fáil finance spokesman, Michael McGrath, said drivers paying around €400 last year will face a bill of some €700 by next year.

He called for Government action to examine how seven out of 10 claims are settled without any open record about how it is done. There was also an increase in fraudulent claims, he added.

“There is a complete lack of transparency about claims,” Mr McGrath said and called for the establishment of a claims register.

“These increases are not sustainable. They’re placing increasing pressure on household budgets and indeed on business,” the Fianna Fáil spokesman said.

Mr McGrath said the Motor Insurance Advisory Board, which operated a decade ago and helped cut insurance prices, should be revived.

Replying for the Government Tánaiste Joan Burton agreed there was a need to examine insurance costs – but she said establishing a new quango was not the way to go about it.

Ms Burton said the Government’s personal injuries board had also helped cut claims. She suggested that a number of measures could be used to examine insurance costs – including scrutiny by a Dáil committee.

“Shopping around for insurance – even with higher premiums – does pay. And you shouldn’t tell people they’re not to shop around,” Ms Burton said.

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