Irish road haulage companies could be forced to sell off vehicles to cut costs due to hikes in insurance costs, according to the Irish Road Haulage Association (IRHA).
A survey of its members published today indicates insurance costs have increased by an average of more that 40 per cent in the last 12 months.
Today’s survey shows almost half the association’s members are considering selling off vehicles to reduce costs. Another 10 per cent have said that if insurance premiums continue to rise at their current rates they will be forced out of business.
An IRHA spokesman this morning called on the Government to "take on the vested interests" who have driven insurance premiums higher and called for the full introduction of the Motor Insurance Advisory Board report, which was published in April.
The report suggested that motor insurance costs in this State are among the highest in Europe. A combination of high legal costs and a lack of competition in the insurance market has pushed up premiums in recent years.
The IRHA says its members are experiencing an average 42 per cent increase in motor premiums in addition to increases of up to 60 per cent in public liability insurance.
Insurance premium hikes are understood to be adding as much as 6 per cent to hauliers' bottom line costs annually.
