Eugene Murphy (Roscommon-Galway, Fianna Fail) | Oireachtas source

Since I became a Member of this House in February 2016 I have been very impressed with my party colleague, Deputy Michael McGrath, who has put an extraordinary amount of effort into raising the issue of increasing insurance costs. I also want to acknowledge the sincerity of the Minister of State, Deputy Eoghan Murphy, in trying to deal with this issue. The Government must take urgent action now to tackle exorbitant motor insurance costs as the situation is reaching crisis levels and leaving businesses, families and motorists struggling to make ends meet. I have had many calls to my constituency office from people who are angry and frustrated, having been hit by 30% to 50% increases in motor and other insurance costs. Many families are struggling to keep their heads above water. They are paying mortgages, meeting exorbitant child care costs and paying other bills while trying to put food on the table. The increases in insurance costs are putting extra pressure on already struggling families.

This is an issue of particular concern in rural areas like my own constituency of Roscommon-Galway, where we have a very poor public transport system and so many people rely on their cars. They need their cars to bring their children to school, to get to work and to do whatever work they have to do around the place. A car is vital in rural Ireland. I was contacted recently by a constituent whose car insurance had increased by 30% from €560 in 2015 to over €800 in 2017. This is a person with absolutely no claims, whose car is about ten years old and is valued at €2,000. As he pointed out, he got €5 back per week in his salary with the budgetary cuts to the USC but he is now faced with rising car insurance costs as well as the crippling cost of family health insurance. He has no fear of anyone coming in through his front door to rob him when they can just do it through the letter box and that is what is happening. Many businesses, particularly SMEs, are also experiencing massive increases, in the order of 40% and higher, in their motor, public liability and employer liability insurance premiums.

I know of a 19 year old girl with a full licence who has never been involved in a crash but the first insurance quotation she got was for €6,000. Her car is only worth €2,800. The driver of a wheelchair accessible taxi was quoted €12,000. A hotel in my constituency paid €20,000 in insurance last year. It made one small claim and now its insurance premium has increased to €50,000. We all know about the problems with health insurance and other areas of insurance too. We need to address this issue.

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