Call for additional car insurance rebates due to Covid impact on driving levels

The relaxation of restrictions during summer 2020 saw traffic volumes return to almost normal levels but subsequent lockdowns saw the number of cars on the road fall significantly again. Picture: Denis Minihane

Motorists should receive additional insurance rebates to reflect reduced driving levels as a result of the Covid-19 pandemic, the Consumers’ Association of Ireland (CAI) has said.

Data from the Central Statistics Office (CSO) shows the volume of cars on the roads last year was more than 70% lower than in 2019, when restrictions were most stringent between April and May.

The relaxation of restrictions during summer 2020 saw traffic volumes return to almost normal levels but subsequent lockdowns saw the number of cars on the road fall significantly again.

The CAI said six of the main motor insurers provided small rebates to consumers in March and April last year, of between €30 and €40, to reflect this reduction in car usage.

25 weeks of lockdown

However, the association highlighted there have been more than 25 weeks of “focused and enforced lockdown”.

“When a State-required and enforced lockdown limits movement nationwide, then it should naturally follow that the State-required insurance is fairly refunded in proportion,” said Dermott Jewell, policy adviser to the association.

“This is not an unreasonable or unsubstantiated claim but rather a reasonable expectation of appropriate consideration of fair return under unique circumstances in the lives of all motor insurers and their loyal and valued customers.” 

The association said it would be writing to Minister of State at the Department of Finance Seán Fleming to outline these concerns.

Insurance Ireland, the umbrella group which represents insurance companies in Ireland, said its members have committed to a “wide range of forbearance measures” for its customers, and have shown flexibility since Covid-19 hit.

“On the issue of rebates, our members refunded €56m in premiums to Irish customers during the first lockdown. Ireland led the way on this in Europe. We were the only country to offer any rebate on a cross-industry basis,” Insurance Ireland said.

“During the most recent level 5 lockdown, traffic volumes have been higher and local roads busy with people driving initially within the 5km limit, and more recently within the 20km limit.”