Savings could be on the way
Hard-pressed motorists are set for a double dose of good news.
Not only have fuel prices tumbled in recent weeks, but there is a real possibility that insurance premiums will fall.
The Automobile Association in Ireland said that insurers in Ireland must do more to help consumers facing financial challenges because of the COVID-19 outbreak.
The AA is urging underwriters to take action to help their customers during this difficult time. In particular, the AA is urging insurers to reduce premiums for the duration of the emergency as most people are hardly using their cars.
“Nothing about this is easy but we cannot let the ordinary motorist sit at the bottom of the food chain once again,” AA Ireland Director on Consumer Affairs Conor Faughnan said.
“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.”
“Right now most cars around the country are sitting on driveways apart from occasional, essential travel,” he explained.
“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.”
The AA, which is a leading insurance intermediary, does accept that Insurers are also badly affected.
For Commercial Insurance especially the near cessation of business activity in many industries is having a huge impact.
The AA also acknowledges that Insurance companies deserve credit for how they are working with commercial clients at this time.
But Faughnan added: “To be frank, they need to look at it harder and they need to look at it quicker.”
Meanwhile, petrol and diesel prices have fallen considerably since the start of the year, due to oversupply, partly caused by the less demand due to the Covid-19 outbreak.
At the start of the year a litre of petrol cost 144.5c, with diesel costing 135.9c on average.
Now petrol has dipped below 120c a litre in some garages while diesel is available in the county for as low as 105.9c in one outlet today.