Cost of car insurance falling claims AA

The cost of car insurance has fallen by as much as 20 per cent since the introduction of the penalty points scheme and the tougher…

The cost of car insurance has fallen by as much as 20 per cent since the introduction of the penalty points scheme and the tougher line taken by courts in personal accident cases, according to a new study commissioned by the AA.

The study carried out by Catalyst Market Research on behalf of the AA found that car insurance costs have fallen since the last survey carried in April."Overall, prices have fallen by as much as 20 per cent since the AA last carried out a survey of this kind in April of this year. This is certainly good news," said the AA's public affairs manager Mr Conor Faughnan.

"The main reasons behind the fall certainly include the reduction in the number of accidents brought about by the introduction of the new penalty points system," he said.

"The priority now is to enforce the system more thoroughly. We cannot afford to let it lose its momentum," he added.

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The AA also called for the Government to establish a dedicated Garda Traffic Corps to build on the gains made in road safety since the introduction of penalty points.Mr Faughnan said that the changes put forward by the Motor Insurance Advisory Board have begun the process of reform in the area of legal costs and there is a growing social acceptance that the days of the 'compo culture' will have to be left behind.

"The 'compo culture' costs us all a fortune. However, there is evidence in recent months that the courts are being less credulous than before. People are also sick and tired of a dishonest minority taking money from us all through insurance fraud," he said.