Tuesday 25 October 2016

Motor insurance premiums shot up by almost a third last year

Published 14/01/2016 | 11:23

MOTOR insurance premiums shot up by almost a third last year, official figures show.

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The average premium was up 31pc in the year to December, inflation figures from the Central Statistics Office show.

Overall prices were up just 0.1pc since last year. Rents were the other big riser, going up 9.6pc in the last year for those who are tenants of private landlords.

Motor insurers have been pushing up premiums after making losses in the last two years.

The industry is loss making after getting involved in under pricing its motor policies, and failing to put aside sufficient reserves to meet a rising level of claims.

The sector has been hit with more frequent claims and higher court awards.

The huge hike in motor premiums comes after the effectiveness of the Central Bank in regulating insurers has been questioned by an international ratings agency.

Standards & Poor’s said the handling of various insurance company failures by the regulator raised questions about its ability to do its job.

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