AA: Kenny must rein in soaring cost of insurance

The Taoiseach needs to belatedly intervene to stop the costs crisis that has sent car insurance premiums rocketing 35% in less than two years, the AA has said.

The motoring organisation yesterday said nothing less than an independent probe encompassing a number of government departments and agencies would work to rein in soaring car insurance costs.

“We want the Government, probably with the Taoiseach’s leadership or the Department of the Taoiseach’s leadership, to establish a taskforce to address these issues,” said Conor Faughnan, AA director of consumer affairs. “We are not prone to melodrama in this regard but if we are going to get those disparate actors to act in concert together, it is going to need leadership from the top level in Government — and we are not just not getting that at the moment.”

Presenting its action plan, the AA largely backs complaints voiced by insurers about high legal and settlement costs. It says an average car premium would fall €107 if costs were reined in.

Whiplash claimants will typically get €5,000 in the UK, but will receive €14,000 here, it says. And it wants to abolish the 6.5m windscreen discs printed for 2.4m cars, saving €10m a year. It seeks more resources for the Central Bank to stop any repetition of the Quinn Insurance and Setanta Insurance debacles, which together cost €200m. The Government should also pursue the Maltese government for €94m losses linked to the collapse of Setanta Insurance, it said.

Insurance brokers have told the Irish Examiner car premiums are likely to rise by a further 15% in the next 12 months, or until insurers start making profits again.