The increasing cost of motor insurance premiums, with the latest official data pointing to a jump of almost 10 per cent year on year, has led to the junior Minister with oversight of the area to express his concern.
According to the Central Statistics Office (CSO), the cost of motor insurance climbed by 8.4 per cent over the last 12 months, more than four times the general rate of inflation which was put at 1.7 per cent.
The recent jump in prices comes on top of multiple increases in 2023 and 2024 with the average cost of a premium said to be well in excess of €600 as a result.
“The year-on-year increase in motor insurance is concerning, despite prices being over a third lower since their 2016 peak,’ said the Minister of State with Special Responsibility for Financial Services, Credit Unions, and Insurance, Robert Troy.
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“While recent reforms in the sector have had a positive impact, it is clear that more needs to be done from a policy perspective to ensure that consumers are getting access to cheaper premiums.”
More engagement with the Injuries Board has led to a reduction of 30 per cent in respect of motor injury claims and 41 per cent in respect of awards values over a six-year review period covered by a recent report.
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There have been substantial changes to the motor insurance sector over recent months that have made it harder for people driving without insurance to escape detection.
Reforms have also brought about greater transparency when it comes to claims and driver behaviour all of which suggest g the cost of premiums should be on a downward trajectory.
However that has not been happening with some motorists now paying more than €200 for cover than they were just three years ago.
The Minister for State said that in his meetings with “the main insurance players since taking office, I have underlined my expectation that savings arising from these reforms be passed on to consumers.”
He said that a public consultation on the new Action Plan for Insurance Reform has been completed and reviewed by officials in the Department of Finance.
“Insurance reform is a key priority for me and this Government, and we will be in a position to publish this Action Plan over the summer,” he continued.
He said it was his intention that the plan would l focus on a “series of targeted actions which can have meaningful impact for consumers, including an expansion of the Office to Promote Competition in the Insurance Market.”
