Government inaction drives up auto insurance prices
Car insurance companies’ complacency and government inaction are driving up car insurance prices for Irish consumers, and if a few key changes are implemented, hundreds of euros in savings each year could be achieved. carried out, it was claimed.
After a long period of stability, prices have increased by more than a third since January 2014.
The insurance industry has blamed soaring premium prices on the high cost of arbitration awards, legal fees and fraud.
He also highlighted the High Court ruling on Setanta Insurance, which left the industry to pay a bill of more than 100 million euros after the company closed in 2014.
However, the AA says price increases are not inevitable and that if action were taken by both industry and multiple government departments, consumers would make big gains.
“Irish motorists don’t just pay for insurance. They pay the real price of insurance plus the cost of an unacceptable amount of fraud, waste and inefficiency, ”said AA Consumer Director Conor Faughnan.
“Prices are going up now, but they shouldn’t need to – if a number of steps are taken to address some of the problems motorists have long paid for. “
The key areas identified by the AA to deal with a growing crisis – which will cost Irish motorists more than € 300 million in additional premium costs in 2016 – are sector transparency, standardization of court decisions, overhaul of regulation and zero tolerance for fraud.
“If they are not, we will continue to suffer from uncertainty, market failures and unacceptably high prices.”
The AA called on the government to immediately create a task force to deal with the reforms.
This group should include representatives from the insurance sector, the ministries of justice, transport and finance, a Garda Síochána and the legal sector.
“These areas cut across many functions and departments of government and other agencies, so no agency gives them the appropriate priority,” Faughnan said.
A key development that could save consumers money would be the deployment of an integrated information data service data center, ”said Mr. Faughnan.
Mr Faughnan said it would “also make life easier for honest motorists” by eliminating the need for them to obtain written proof of unclaimed discounts, which is currently a barrier to shopping.
He said it was “a shame that insurers operating a similar system in Northern Ireland have failed to establish one here.
“As it is, when a consumer requests coverage from AA or any other supplier, they will be asked to send a copy of their non-claims remission statement.
“We receive counterfeits every day. We can detect them (we’re big enough to have a cheat unit) but others can’t. “
The AA also called for the abolition of windshield discs, as has been done in the UK, and their replacement with camera-based technology.
This has already seen a 42% increase in fraud detections in the UK since it was done there in October of last year.
Mr Faughnan said the paper discs were “a fraudster’s charter” and should be replaced with automatic license plate technology.
It is a system of cameras, whether car-mounted, stationary, mobile or hand-held, that can read car registration numbers and compare them to a database in real time.