Motor insurance companies must cut premiums as traffic volumes fall by 40% since March - Pearse Doherty TD
Sinn Féin spokesperson on Finance Pearse Doherty TD has written to Insurance Ireland and called on motor insurers to provide reductions or rebates to their customers equivalent to at least 20 percent of premiums for 2020.
The move comes after the latest CSO figures show a 38 percent drop in the volume of cars on the road since the beginning of March.
Speaking today, Teachta Doherty said:
“Since the Covid-19 outbreak and the containment measures introduced to contain its spread, it was inevitable that traffic levels would decline.
“Data published by the CSO show a 38 percent drop in cars on the road since the beginning of March.
"Indeed, for three quarters of this year traffic volumes fell by 38 percent compared to 2019. This fails to even take account of traffic volumes as a result of Level 5 restrictions in November.
“This will mean a reduction in car traffic volumes of at least 30 percent for 2020.
“A reduction in cars on the road mean a reduction in the number and cost of claims.
“Based on recent figures published by the Central Bank, this reduction in traffic could cut underwriting costs for the motor insurance industry by at least 20 percent this year.
“These savings must be passed onto consumers.
“Motor insurers should provide rebates or reductions equivalent to at least 20 percent of premiums.
“To date, insurance companies have taken this crisis as an opportunity to bolster their profit margins, offering rebates or vouchers that bear no resemblance to the savings these companies will make as a result of the Covid-19 outbreak.
“That approach must now change.”