Our Government needs to address drivers’ biggest issue – insurance

Things are better than they were 20 years ago. Road deaths have fallen from 472 in 1997 to 159 last year so we must be doing something right. We’re paying far less VRT, roads have improved a lot, standards are generally better. So yes, much progress. I’m a fan of electric cars but they haven’t really taken off yet. They will, I’m sure of it. We went from a mobile phone the size of a brick to the iPhone in 12 years. If we have that rate of progress on electric cars, they will soon be everywhere. Conor Faughnan, Director of Consumer Affairs for AA Ireland, answers our consumer questions this week. You have long championed the cause of the Irish driver. Have we seen progress in how motorists are treated? Are electric cars a compelling proposition for motorists yet? The motor industry has railed against the importation of UK cars – but are they really unsafe or riddled with fraudulent practices, such as clocking, as they imply? They can be for the foolish. The trade here can be a bit protectionist but AA research shows that a car coming in from the UK is twice as likely to be clocked as a locally sourced one. If a seller will clock a car he’ll deceive you in other ways as well. I won’t say don’t buy from the UK, but have your wits about you and do your research. Motor tax is quite low for newer cars. Are we going to see a correction? Probably. The Government made a mess of it in 2008 when they switched tax from engine size to tail-pipe emissions. Those 10-year old standards are so out of date that all new cars now are ultra-low polluting for tax purposes, and the revenue has dried up. I did warn them at the time but we’re the AA: we’re not sorry that they meant to fleece motorists but got their sums wrong. Still, I feel a fight coming on… Older cars are getting hammered by insurers and the taxman. Do you agree with this? No, it is an injustice baked into the system. It will disappear in time as those cars age, but it isn’t fair. PCP plans – a boon or a curse for car buyers? They are very seductive but I’m not a fan if you can avoid them. They can work if you accept that you are going to have a long-term, multi-car relationship with one dealer or brand. Is that really what you want? Most important issue for motorists? Right now its motor insurance. Our Government’s attention span hasn’t kept up and it is talking more about more ‘current’ issues, but motor insurance rocketed three years ago and stayed high. AA is actively lobbying on this and there are ways to fix it, given the will. Safety, congestion, public transport, cost – the motoring consumer still has lots to worry about. What car do you drive? I’m a rare breed these days – I have a company car. Costs me a fair bit through Benefit in Kind tax, but it has advantages. Best car you ever bought and best you drove? I’ve always had company cars so I have never bought one. Best I’ve driven was a 2.5l Subaru Impreza rally car through three rally stages. Biggest financial mistake? Frittering away money daily. My coffee bill is terrifying. What would your best piece of consumer advice be? Debt is your enemy. Save first, then spend. What was your most expensive fun purchase? Holiday junkie. City breaks, rugby trips and summer sun. Best financial decision? Buying my first house. We’ve been ahead ever since. More luck than judgment. One little luxury you’d like to treat yourself to? The Rugby World Cup is in Japan next year. Just sayin’. Name three things you’d do if you were Minister for Finance tomorrow? The immediate need is for a housing and homelessness fix, which is not just building. It’s also things like social supports and services.

Long term, it’s education. End third level fees and support access for all, especially from communities that have not traditionally gone to university. My generation was perhaps the first to experience that and it transformed Ireland. Pushing college out of reach of working families is a major strategic mistake. Lastly, more Luases!