The AA has called on Irish insurers to reduce the cost of premiums during the COVID-19 lockdown as most people are hardly using their cars at all.
'Nothing about this is easy'
The AA, which as it points out itself, is a player in the insurance market, says that underwriters must take action now to reduce the financial burden on motorists.
"Nothing about this is easy but we cannot let the ordinary motorist sit at the bottom of the food chain once again", says Director on Consumer Affairs Conor Faughnan. "We want to see insurers look more directly at how they can help consumers right now. A lower claims risk must mean lower prices for ordinary people. I know insurers are looking at this and the AA has engaged with many directly but they have to do more. They need to consider refunds or premium reductions.
Traffic volumes have fallen dramatically
"Right now most cars around the country are sitting on driveways apart from occasional, essential travel. Daily traffic volumes are down more than two-thirds across the network. This means a huge reduction in the exposure to motor claims and in all fairness consumers who are facing a cash crisis themselves need to have that recognised in the price they pay."
Faughnan acknowledges that the insurance industry itself is suffering from the shut-down, especially in the commercial insurance field, but says that more must be done to help those in most need. "To be frank, they need to look at it harder and they need to look at it quicker."
Part of the national effort
He also defended the AA's position in the insurance market, saying that because it is a re-seller of insurance, it cannot control the prices it offers, although it can pass along bulk discounts to consumers. As well as providing free roadside assistance to critical care workers, the AA says that it is also waiving fees for its hotel inspection and grading services.
"Both the scale and the suddenness of this economic shock have hit households and businesses hard and that includes the Insurance industry. We are all trying to be part of the national effort. But at a time where many people are facing job losses, it's time for insurers to step up and do more" said Faughnan.