Car sales in the county have had a welcome increase, with an 18% rise in new registrations to date this year.
However, motor insurance premiums have increased by 71.3% in the past three years, causing a burden to motorists and businesses.
New car registrations in Donegal stand at 3453 unit sales up to September 2016. Last year’s sales to date were 2924.
The figures come from the Society of the Irish Motor Industry, who say that the rise in the cost of motor insurance premiums for consumers and businesses is now a serious concern.
In the past year alone, motor insurance premiums are up by 38.6%, and with further increases expected, SIMI say that younger drivers and those on lower incomes will be seriously affected.
SIMI Director General Alan Nolan said, “Consumer and business confidence are crucial in driving economic activity so any negative decisions in the forthcoming Budget will directly impact on activity, on employment and on tax revenues in 2017.”
“Our experience of previous periods of high insurances costs suggest that car maintenance will reduce, increasing the risk of accidents and the incidence of uninsured driving is also likely to increase.”
The society are calling for the re-establishment of the Motor Insurance Advisory Board, whose recommendations led to reductions and improved transparency in relation to the factors contributing to insurance costs.
