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The cost of car insurance is something that affects all law abiding drivers. Most motorists probably haven't considered the impact of rising claims on tourism. In a statement to an Oireachtas Joint Committee on Finance, Public Expenditure and Reform, Paul Redmond, Chief Executive of The Car Rental Council Ireland said the price of insurance was starting to affect Ireland's reputation as a destination for overseas visitors.
In the past four years third party liability costs for rental firms have more than trebled. Companies in Ireland are paying three times more for third party claims than those in France and twice as much as their sister companies in Germany, Spain and the UK. Those costs are passed on to the people who take out nearly 650,000 rental agreements at Ireland's airports every year.
To reduce the cost of claims the Council wants to see personal injury claims benchmarked to a European norm. Most money is paid out for soft tissue injuries such as whiplash with the Council of the Bar admitting that the damages awarded in such cases is higher in Ireland than in other countries.
Even where injuries are minor there are frequently multiple claimants. Redmond reported instances of up to six claimants per incident with settlement costs greater than €100,000.
Redmond concluded, "Competitiveness is key to promoting Ireland as a destination for overseas visitors. The Car Rental Council of Ireland's members just want a normal environment for business to operate in and an environment that supports competitiveness in the industry".