Responding to recent CSO figures released confirming that car insurance premiums jumped by a massive 38.3% over the past 12 months Brian Stanley TD said
“The increase of almost 40% for car insurance premiums will cripple ordinary people and families particularly in rural areas of Laois. To expect people to pay an increase of €200 – €500 on car their insurance is placing a huge burden on people. This is a 70% increase over just 3 years and is expected to rise by another 15% by the end of 2016. When do we say enough is enough ?”
“People and families in rural areas rely heavily on their cars due to the lack of public transport. I have received many complaints particularly from younger people who have also been seriously affected. A large proportion of young people are working in low paid employment but rely on their cars for work. Others will be doing unpaid internships or attending college.
“So far insurance companies are blaming higher claims and fraud for the hikes. While these may be contributing factors they cannot account for such major increases overall. There is also less competition due to the collapse of two insurance companies which we will pick up the tab for. The Irish insurance sector have fallen way behind the advances of technology and should move forward to create a centralised data system, that gives access to all insurers, with details of all motor insurance policies and records of claims.
Sinn Féin have put forward a number of other measures on car insurance which would help reduce costs. These call for the insurance industry to take responsibility and explain such huge increases, which often occur multiple times throughout the year. We also want the Oireachtas Finance Committee to investigate the increases and ensure the Central Bank enforce proper regulation on the industry. Responses to parliamentary questions and from the Central bank show that the company’s own investment policy is much worse in an era of low interest rates. The Government need to impose tighter regulation and more transparency from the Central Bank and the insurance industry.”
Brian Stanley concluded by saying ” An investigation must be carried out to get the facts around these hikes. Companies must be forced to justify their reasons for the increases.”
