Martin Ferris (Kerry, Sinn Fein) | Oireachtas source

During the course of the election campaign one of the big issues on the doorstep particularly in rural communities was the enormous cost of car insurance for young people. I met a young man who was quoted €8,000 for insurance. Another was quoted €8,500 and €9,000. Neither of these lads has any road traffic convictions. They have full licences and three years’ experience of driving. They work approximately 12 to 18 miles from their homes and need a car. They live in rural Ireland where there is no public transport. The only way they can get to work is by car. At €8,500 or €9,000, that is between €170 and €180 per week for insurance. They bring home approximately €380 per week. Effectively they are working for nothing. That does not take into account the wear and tear on their cars, tyres, petrol, tax, all of which has to be taken into account. These young men and women want to work and are lucky to have work but they are being discriminated against because of their age and the fact that they come from rural Ireland. If they lived in a city or large town where there would be public transport it would be very easy for them to live and work in their areas.

I participated in a debate on Monday morning with a spokesperson from the insurance industry. Part of the excuse that person gave for premiums going up was the cost of going to court. The spokesperson said that 60% of the insurance industry costs were legal costs. This is a gravy train for solicitors and insurance companies, and young drivers in particular are their victims. I cannot understand why an insurance company will settle outside the court and pay compensation on the assumption that it will not win the case.

I have had that experience following an accident. The person who ran into me took responsibility and I accepted that but four hours later the person had a change of mind. I then instructed my insurance company which settled outside the court, each of us paying our own costs, against my wishes. That was a decision taken by the insurance company. How many people find themselves in similar situations where an insurance company, rather than go into court and fight to defend what is right, is prepared to compromise and settle, using the excuse that legal costs are 60% of what they pay out?

Rural Ireland is not in a good place because of neglect by successive Governments down through the decades. The abdication of their responsibility for rural Ireland is clear for everybody to see in the social consequence of mass emigration. Where there are jobs for young people who want to work they are crippled and penalised by insurance companies. We need to start thinking outside the box and see if there is a way to make those costs affordable, fair and equitable. In the so-called UK there is a smart box installed in the car which is used to monitor young drivers. There is technology which can restrict the speed of the car and restrict the cc of the car for younger drivers which would go some way to help ensure that people could get to and from work.

Insurance for local employment schemes has increased 300% in the past two years. That means that a service primarily for rural Ireland is being crippled by insurance companies. They use the excuse of false claims. Are they going to penalise the innocent because people are making false claims? That is what they are doing. They are penalising genuine, decent, young people, with the excuse that some people are making false claims and they have to pay them. Why pay them? If they are false, fight them and stand up to the people making false claims and do the right thing.

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