Insurance fears and penalty points hurt car repair firms

It's a sure sign the Government's road safety campaign is working - panel beaters and crash repairs firms are reporting a sudden…

It's a sure sign the Government's road safety campaign is working - panel beaters and crash repairs firms are reporting a sudden slump in business.

Anecdotal evidence in the trade suggests the number of insurance claims for repairs has dropped by 20-40 per cent since the introduction of penalty points, the National Car Test and other measures targeting rogue vehicles and drivers.

Mr Joe Donnelly, owner of Crofton Motors, a large repairs firm in Crumlin, Dublin, says it has seen a fall-off in business of about 20 per cent in the past two years, stemming, he believes, from a reduction in accidents of as much as double that.

"We haven't fared as bad as some other places, but everyone has been affected one way or another by the huge reduction in accidents. The introduction of the NCT was a big factor. A lot of bangers were taken off the road and the cars have got safer generally."

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The penalty points system is also influencing driver behaviour, he says, although its full impact on the repairs trade has yet to be seen.

"People are scared out of their wits of getting points and then of getting a double hit with a hike in their insurance premiums."

Fears of higher insurance have played the biggest part in the slump in trade. "A lot of people are driving around with a bump in their car when previously they would have got it fixed." Drivers fear their insurance costs will soar if the make a claim, he says.

Other repair firms agree. Mr Owen Cullen, owner of Ballsbridge Crash Repairs, Dublin, says whatever about a downturn in accidents, "there definitely has been a downturn in claims. People are paying as much as €5,000 or €6,000 themselves rather than claiming because of the cost it will add to their policy."

Since Christmas there has been a "slight downturn" in business but it is impossible to say whether this is due to penalty points, a seasonal blip or other factors. "Penalty points are not going to stop people from making mistakes," he notes.

Mr Keith Quinlan, director of W.P. Quinlan and Sons, says "the last few months have been a lot quieter" in the trade. "Drivers are getting more careful. There has also been a general economic downturn which means people are not doing repairs or are selling their cars on."

National Roads Authority statistics published last month showed the number of road accidents had already been dropping before the introduction of penalty points on October 31st.

The number of material damage accidents, where no injuries or fatalities were sustained, fell by almost 4,000 to 21,191 in 2001.