High car insurance premiums are crippling the working poor – Codd

Irish car insurance premiums are still over 30% more expensive on average than they were in 2015 a local election candidate claims. Jim Codd of Aontu says shocking insurance quotes are crippling young people and the working poor and encouraging a culture of uninsured driving.

“Our car insurance industry remains deeply flawed despite government efforts to reform it,” Mr Codd said. “Car premiums are rising, particularly for young drivers and owners of older cars. Many drivers of cars that are over ten years old find it hard to even get an insurance quote, even though their car may have just passed the NCT. The argument that older cars are more likely to be involved in claims based on recorded stats does not hold up as it very obviously fails to acknowledge the great number of older cars on the road and the high number of them being driven by ‘at risk’ categories of drivers.”

“The government’s plan to deal with unsustainable car insurance is to make both premium calculation and details of past claims more transparent. This is nothing short of ineffective bureaucratic shadow boxing and will do little to help people struggling with unaffordable insurance bills.”

“Radical action is required. In Australia, all cars must be registered, which usually comes with a vehicle test similar to the NCT. They are then given state appointed compulsory insurance which covers personal injuries to the driver or third parties. We could adopt this system and, by further developing the NCT and DOE, offer all passed vehicles a basic third party insurance. This would eliminate the uninsured drivers problem and create an unbiased form of base insurance for younger drivers and owners of older cars. Obviously fire and theft, and comprehensive insurance would still be privately purchased.”

“Greater regulations on accident claims must also be introduced. In 2012 strict cut off points were introduced on accident claims in Florida resulting in a drop of 13% on average car insurance premiums over the next two years. Thinking differently is the only way to tackle this crisis. Setting up government sub committees advised by the very insurance companies who are profiteering off the current premiums will do nothing but ensured continuing escalating annual quotes.”