Car Insurance Credit Needs To Be Considered For Low Income Earners says O’Rourke

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Local Fianna Fail TD, Frank O’Rourke, has called on the Government to introduce a car insurance credit for low income earners, to assist in dealing with the high car insurance costs. Deputy O’Rourke raised the matter following a meeting with a constituent who showed him the insurance premium for a modest car which had increased by 30% over the last few years.

“The Government has failed to deal with the motor insurance crisis. While I appreciate that the Government is implementing the action plan to deal with the high cost of car insurance, progress is too slow and it does not seem to be a high priority for the Government

“Over the past three years, premiums have risen by over 50% and the government has failed to take decisive action to stem the rises that are placing families in severe financial difficulty.”

“Earlier in the year, I called on the Government to publish a Quarterly update on the implementation of the action plan on the Cost of Motor Insurance. The first report was published recently which showed that very little progress has been made in implementing the action plan.”

“It is not enough to say that the rate of the rise in car insurance is reducing, we simply have to reduce the cost of motor insurance. I believe that the Government should consider a car insurance credit, either by way of a tax credit or by way of a voucher for low income earners and families. This could be introduced on a temporary basis, say for a 12 month period, until car insurance is reduced. It will also incentivise the Government to implement the action plan designed to reduce the level of car insurance.”

“As I have said in the Dail, there is little point in reducing the Universal Social Charge, if a multiple of the reduction in USC, is being taken back by increased insurance costs. I believe that a measure to assist low income earners to secure car insurance is essential” concluded Deputy O’Rourke.

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