Lorry driver forced off the road by €2,500 insurance hike
A Galway lorry driver has been forced off the road because of a €2,500 overnight hike in his insurance bill, the Dáil has been told.
The man’s plight was highlighted by Galway West Independent TD Noel Grealish during a debate on a motion calling for the establishment of a task force to look into the soaring cost of insurance in Ireland.
He told how the lorry driver in question – with a clean licence and who never had an accident – saw his insurance bill jump from €1,320 last year to €3,847 this year.
“He is just not in a position to pay it. This individual has children at school, but the lorry is parked up because he cannot drive it. He is in the process of trying to raise the money somewhere to pay for the insurance.
“We priced around with a number of insurance companies but they will not give him a quote. This is what is happening. Is it that these insurance companies are operating a cartel or something? I believe they are playing to their shareholders and maximising their profits.
“Unfortunately, many of these insurance companies are multinational companies, so I do not know if the Government can force them to bring down their prices,” said Deputy Grealish.
The Galway TD recalled how in 2002, the then Tánaiste, Mary Harney, introduced the Personal Injuries Assessment Board, which brought down insurance costs in the following years.
And he pointed out that today, it was not just car insurance that had increased, with household and business insurance also going up.
“This morning, I rang five business people in Galway. Their insurance costs have increased in the past two to three years by between 20% and 50%.
“In one company alone, there was a €70,000 increase in the insurance costs for a major factory. The owner told me he will have to let staff go if insurance costs continue to increase.”
Deputy Grealish claimed that soaring motor insurance costs had resulted in some young drivers taking to the road without insurance cover and pleaded with them not to.
“They might buy a car for between €2,000 and €3,000 and the first insurance premium could be €4,000 to €5,000,” he said.
On the question the refusal of insurance companies to renew cover for houses which have been flooded in the past, he warned that a review being undertaken to try and deal with the issue would produce no solution unless it had teeth.
He also predicted that businesses and shops would close because the costs had gone through the roof.
“I ask and plead with the Government to ensure that if it does something regarding insurance, it is given some sort of teeth and will force insurance companies into action.
“Some members have spoken about setting up a national insurance company run by the Government. I do not believe that is the answer, but something has to be done to ensure premiums are reduced. I hope that following this motion something will be done,” added Deputy Grealish.