The average cost of motor insurance in Ireland rose by 9% during the first six months of 2024, according to newly released figures from the Central Bank’s National Claims Information Database (NCID). The data shows that the average premium increased by €49, climbing from €567 to €616 compared to the same period in 2023.
Despite the recent uptick, current premium levels remain about 25% lower than the 2017 peak. However, the trend has reversed since mid-2022, with prices now up 12% from their lowest point. The average annual cost of motor insurance in Ireland continues to far exceed the European Union average, which stands at €315.
Between January and June 2024, insurers issued nearly 1.2 million new motor policies, amounting to a total of €729 million in premiums. The data also reveals a growing preference among drivers for comprehensive cover, which accounted for 93% of policies during the period, up significantly from 80% in 2009.
Insurance Ireland CEO Moyagh Murdock acknowledged the pressure from rising premiums, citing inflation and ongoing challenges in the claims system. “Although premiums have begun to increase, reflecting the increased cost environment, Irish motor insurance customers have benefitted from significant decreases in recent years,” she said.
Murdock also pointed to the high volume of litigated claims as a persistent cost driver. “Settling claims through the more expensive litigated route continues to add significant cost, despite offering no greater compensation than other settlement methods.”
She added that the industry is awaiting the full-year NCID report, which will also assess claim costs, a factor she noted has been rising.
Concerns have also been raised about the Judicial Council’s recent recommendation to increase personal injury awards by 16.7%. Insurance Ireland warned this move could undermine progress made through government reform efforts aimed at reducing insurance costs.
Brian Hanley, CEO of the Alliance for Insurance Reform, described the jump in premiums as “no surprise” for motorists. “With the Minister for Justice now considering this increase in awards, we risk undoing much of the progress made in stabilising prices,” he said. “Motorists, businesses, and community organisations simply cannot afford further hikes.”
The developments come amid broader calls for reform of the insurance claims process and renewed efforts to address rising costs in the sector.
