DUBLIN: The average cost of private motor insurance in Ireland surged by 9% last year, reaching €623 between 2023 and 2024, according to the latest report from the Central Bank. The bank’s seventh motor insurance report, which aggregates data from the National Claims Information Database (NCID), revealed that the total gross written premium for private motor insurance in 2024 stood at €1.46 billion.
The study highlights a significant shift in the drivers of cost:
- Claims Increase: The expected cost of claims per policy rose by 3% to €397 in 2024, the highest figure since 2014.
- Damage Claims Dominance: Damage claims were the primary catalyst for the increase. Damage claim costs accounted for a substantial 54% of total settled claim costs in 2024, a dramatic increase from the 29% average observed between 2015 and 2021.
- Repair Costs: The average cost of damage claims specifically jumped by 18% compared to 2023, which the Central Bank attributes to rising costs of repairs.
- Injury Claims Steady: The cost of injury claims remained relatively steady, with a reduction in the average cost of smaller injury claims being offset by an increase in larger ones.
Government Response and Reform: Reacting to the findings, Minister of State at the Department of Finance, Robert Troy, stated that government reforms introduced in recent years had prevented even more significant cost hikes. Speaking on RTÉ’s Morning Ireland, Troy identified high legal costs as a contributing factor.
He urged claimants to utilize the Injuries Resolution Board, noting it can process claims in half the time with broadly similar compensation, while legal fees are only “one-twentieth of the cost of going down through litigation.” Troy announced that he would raise the issue of high legal costs with the Justice Minister to expedite further reforms. He also confirmed that work on a new transparency code is “well advanced” and that the first Cabinet sub-committee on insurance reform is scheduled to meet soon.
