Insurance doesn’t just help you if you are injured, it also can assist in replacing a car destroyed by a collision.
And it is especially necessary if you have a new car. But while so many Irish drivers need auto insurance, few of them find it very affordable according to a recent survey.
In fact, one-third of all of the respondents to the AA survey of 7,000 Irish motorists struggled to find affordable insurance for their vehicle. The AA Car Insurance survey basically reveals a long-running for many Irish motorists which is finding both affordable and comprehensive coverage for their vehicle.
Moreover, the survey found that motorists are more than aware of the problem particularly as it impacts other people. Nearly half of all of the respondents indicated that they knew someone who had struggled with finding affordable insurance over the past twenty-four months.
One complicating factor that arose in 2020 is the ongoing COVID-19 global pandemic and its negative impact on the economy of Ireland and other nations. With auto insurance rates somewhat unaffordable prior to the onset of the novel coronavirus event, they are now even more so when many people are facing the loss of employment or cuts in earnings.
A central issue many in the industry are currently grappling with is the relative lack of airtime this problem is being given when compared to the other difficulties brought on by the global economic crisis.
There is a fear among those advocating for reform that the costs of car insurance and reform of that sector could get short shrift in the broader planning for dealing with the impact of the pandemic now and preparing the economy for a post-pandemic future.
AA Director of Consumer Affairs Conor Faughnan said of the survey’s findings, “The issue of high insurance costs, particularly for younger drivers and those returning from abroad, are not a new story but there is a danger that in giving the Covid-19 outbreak the attention and focus it deserves that we could allow issues like insurance reform to fall off the agenda.”
As a matter of fact, Faughnan and his cohorts have pushed the government for greater reforms of the auto insurance industry in Ireland. These efforts are even more important now that the pandemic has decimated the job prospects for many out of work and made life even more precarious for those lucky enough to still have a job.
Whether through rate reduction or direct subsidies, the need for an intervention is more necessary because of the harsh economic climate many are currently in and the dire projections for recovery in the immediate future.
“There are many out there who are still not seeing a drop in their insurance costs and greater action is needed on a number of items in the previous government’s Cost of Insurance Working Group report in order for more people to start seeing their costs come down. To be fair to the current government, a significant degree of emphasis was placed on lowering the costs of both motor and commercial insurance in the Programme for Government but we now need to see those words develop into action,” Faughnan said.
