Offaly TD says State-backed insurance scheme for drivers must be re-examined
Independent TD Carol Nolan has called on the Minister for Finance, Paschal Donohoe, to reconsider his opposition to the introduction of a State-backed insurance scheme for drivers forced to pay exorbitant premium costs.
The Offaly deputy was speaking after an AA young driver car insurance survey found that 26.6% of respondents said they had to provide a “significant level” of financial assistance to one of their children to cover the cost of insurance when they were learning to drive.
“It is now absolutely clear that all of the measures that the government have proposed to deal with this issue have not succeeded," Deputy Nolan said.
"This clearly means that alternatives that were previously rejected by the Minister, such as the State-backed insurance schemes available in New Zealand, Australia, and Canada for instance, must be reconsidered."
"In Australia for example, it is the law that every car on the road is registered and state insured and this includes a minimum third-party personal insurance cover, which is compulsory. Anything above that you can buy from a private insurance company."
"This would allow the vast majority of young drivers to access affordable levels of insurance with the option of buying more comprehensive cover where it can be afforded."
"We simply cannot allow the situation to continue where insurance companies are effectively being given free rein to charge whatever premiums they like to drivers, and young drivers in particular," the Offaly TD added.
"It must also be pointed out that measures contained in the Cost of Insurance Working Group’s 2017 Report have failed to make any material difference in people’s pockets."
"This highlights the necessity of the Minister re-examining the State-backed insurance option for drivers,” concluded Deputy Nolan.