Motor insurance premiums up 9% amid rising repair costs – Central Bank
The average price of motor insurance rose by 9% between 2023 and 2024, reaching €623, according to new data from the Central Bank of Ireland.
The report found that the average expected cost of claims per policy increased by 3% to €397, the highest level since 2014.
Vehicle repair costs were the main factor behind higher premiums.
The Alliance for Insurance Reform criticised the rise, saying it was adding pressure to the cost-of-living crisis.
According to the Central Bank’s latest Motor Insurance Report, the main driver of the increase was a surge in damage claims, such as vehicle repairs, which rose to €192 per policy. Injury claim costs, meanwhile, remained below pre-pandemic levels at €205 per policy.
While smaller injury claims have fallen in recent years, this has been offset by a rise in the cost of larger claims. Overall, injury-related claim costs were stable between 2022 and 2024.
The operating profit of motor insurers fell to 4% of total income in 2024, down from 8% in 2023 and 12% in 2022.