THE cost of car insurance has soared far beyond the rate of inflation in the last three years. One estimate suggests premiums have increased by around 70% in that period. This imposes a tremendous burden on motorists and families, especially those who are forced to run two cars.
Therefore news that the Competition and Consumer Protection Commission has issued summonses to insurance providers over suspicions of breaches of competition law is very welcome. The agency wants explanations on how industry competitors have signalled increases in premiums and fears “a degree of unspoken co-ordination”.
In another response to soaring insurance costs road hauliers may purchase insurance in the European single market to avoid double-digit increases and a lack of competition in Ireland. About 43% of trucks in Ireland have foreign-registered plates and around 30% of Irish operators are based abroad.
Uncompetitive costs are driving revenue and jobs out of this economy and must be confronted.
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