DRIVERS COULD FACE INSURANCE PREMIUM HIKES OF UP TO 30 PER CENT
Drivers are facing insurance premium hikes of up to 30 percent.
Mistakes by insurance companies, an increase in cars on the roads and the involvement of lawyers and their expensive legal fees in claims are partly to blame.
But personal finance editor with the Irish Independent, Charlie Weston, says the main reason is market under-pricing, led by RSA.
“That company engaged in undercutting everybody else, all the other foolish insurers followed it down – and the result of that was a massive accounting scandal at RSA, it had to be bailed out to the tune of 400 million euros by the British parent company” he said.
“But just years after this happened with Quinn, we’ve seen the same thing happen again” he added.