Rip off car insurance costs needs urgent State intervention

Dublin South West representative and Sinn Féin TD Seán Crowe has called for state intervention into rocketing car insurance claiming that motorists particularly in their 20s were being ripped off due to huge increases by insurance companies. Crowe believes the excuse of rising insurance claims in the courts don’t stack up and are being used as a fig leaf to boost premiums and bigger profits for insurance companies.

Deputy Seán Crowe said:

“A number of months ago Taoiseach Enda Kenny summoned in the insurance companies for a meeting on rising insurance costs. The Taoiseach’s tough talk would appear to have had no impact and the prices of premiums have escalated even further.

“The excuse of “rising claims in the courts” don’t appear to stack up and are being used as a fig leaf to boost premiums and even bigger profits for insurance companies. The Insurance Regulator needs to be more pro-active and investigate the rising costs across the board in this sector

“Young drivers, small businesses and indeed all drivers cannot be an afterthought between industry and the regulator. Their interests and their rights must be first and foremost.

“It is long past the time for policy makers and insurers to focus in on this fact when framing a response to the hugely unfair increases many drivers continue to experience.  The issues around legal costs and the nature of compensation can be looked at but the excuse of rising court pay outs doesn’t appear to stack up.

“The lack of transparency and the complete lack of an independent right of scrutiny of massively inflated quotes for drivers across the spectrum are two areas where the State and State bodies need to act in my view.

“Conscious that hard pressed motorists want to see action, Sinn Féin intends to focus on this issue when the Oireachtas Finance Committee is formed and see what can be done to end this spiral of rising costs. I am hopeful we will see some positive progress and bring about an end to this rip off as soon as possible.” ENDS