Do you know about the
insurance crisis in Ireland
Car Insurance is compulsory in Ireland and in
the last decade insurance did not cost much. Some years back a car owner could
buy fully comprehensive insurance at a very low rate. But from 2015 the cost of
insurance has steadily increased from the cheapest to one of the costliest in
the world.
The Insurance cost will dramatically increase
the cost of a vehicle as the owner has to pay the insurance premium yearly.
Every year it adds to the cost, though it is considered as a safety net for the
owner in case of an accident and the damages incurred to the vehicle and the
passengers.
When the Insurance premium is nominal compared
to the vehicle cost as in many countries, it does not affect the cost of the
vehicle and adds up to the price of the car. But when the Insurance premium is
very high as in Ireland it becomes a burden to the vehicle owner. When the
driver, himself is the owner of a car, the Insurance premium will be a burden
to him. He depends on the income from driving the car for rent and he is
supposed to save from his earnings to pay for the insurance premium.
The illogical premium for car insurance in Ireland
is a big burden for the owner-driver. The Insurance premium adds to the cost of
the vehicle and it will not be returned if there is no claim. Insurance once
paid is irreversible and the huge premiums will only be a burden to the owner
if there is no claim.
Insurance is a one-way ticket and it is only
beneficial if there are accidents for the vehicle. The cost of a car is not
only calculated by the materials and manpower used to make a car but the cost
should also include the overheads spent on a car. Vehicle service cost and
Insurance is two of the most important aspect of the cost of a vehicle.
Vehicle Insurance is calculated based on various
factors like the age of the car, Age of the main driver, Vehicle model and rate of
the vehicle, place of residence and the parking place of the vehicle at night,
profession of the owner and the type of Insurance. All these factors determine
the insurance premium and in the end, everything inflates the Cost of Insurance
in Ireland.
The vehicle price indirectly affects the
Insurance premium and the vehicle cost indirectly increases and is reflected by
the money spent every year for the premium. Because of the cost of insurance,
many owners have started contemplating the necessity to own a car. The
Insurance premium crisis is developing into a big issue as it affects the
lively hood of many people.
Many in Ireland have started feeling that the
Insurance Industry should be taken over by the government to safeguard the
interest of its citizens. This is the only solution to the ongoing crisis in
the industry which has started to affect a wide range of people. Insurance for
vehicles is not a small isolated issue and in the long run, it might have a
long-lasting effect on the economy of Ireland.
Vehicle Insurance premium has increased manifold
since 2015 and this issue should not be considered as a small problem. The
Insurance crisis will have a ripple effect on many other sectors of a country
and the government should immediately interfere in this matter and solve it at
the earliest.
A countries economy should not be affected by a
single sector and the government should control the Insurance companies to
bring down the cost of insurance to reasonable levels.
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