Motor insurance premiums in Ireland rose by 9% during the first half of 2024, according to new data released by the Central Bank. The average cost to insure vehicles such as cars, motorcycles, and vans reached €616 between January and June, marking one of the largest increases recorded by the banking regulator in recent months.
The significant price hike reverses a previous trend of declining premiums and comes despite the introduction of personal injury claim guidelines in 2021 that were specifically designed to reduce insurance costs for consumers.
The Central Bank’s report, which analyzes data from approximately 98% of the market and includes submissions from 13 insurance companies operating in Ireland, also revealed that 24,000 new policies were created in the first six months of 2024 compared to the latter half of 2023. These new policies generated approximately €729 million in written premiums for insurance companies.
Brian Hanley, CEO of the Alliance for Insurance Reform, attributed the premium increases to inflation and rising costs of vehicle parts. He called on the government to explore methods to reduce the financial burden on motorists seeking insurance coverage.
Hanley specifically urged Justice Minister Jim O’Callaghan to reject a recommendation from the Judicial Council to increase personal injury payouts, arguing that such a move would further drive up insurance costs for policyholders.
The Central Bank conducts this comprehensive analysis of the Irish motor insurance industry twice yearly, providing important insights into market trends and consumer costs.