Government have ‘limited powers’ on cost of car insurance

Motorists were advised that the Government had “limited” power to influence the cost of motor insurance premiums as they continue to spiral upwards.

Minister of state for financial services, Eoghan Murphy said while the issue of rising motor insurance costs was one “which requires urgent attention” he had to be “cautious about managing expectations” of consumers anxious to see a drop in premiums.

“It has to be remembered, however, that the ability of the Government to influence insurance pricing is limited as insurance companies are required by European law to price in accordance with risk,” he told the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach.