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Thursday 24 August 2017

Car insurance cost falls for first time in years - CSO

(Stock photo)
(Stock photo)

Charlie Weston Personal Finance Editor

THE cost of motor insurance has fallen for the first time in years.

New figures from the Central Statistics Office (CSO) show motor premiums were 2.6pc lower in April compared with a year earlier.

It comes after three years of rises which have seen the cost of the average policy shoot up by 60pc.

The last time the cost of motor insurance fell was in December 2013, according to additional information obtained from the CSO.

But higher costs of alcohol, petrol and health insurance saw overall prices rise by almost 1pc in the year to April, according to the latest consumer price index.

Air fares have also gone up.

However, food prices have gone down in the last year, as a weaker sterling against the euro have made imported groceries more price competitive.

Clothing is now cheaper due to sales, the CSO said.

But the big surprise is the fall in the cost of insurance.

Surges in the cost of cover over the last few years have seen premium rates shoot up since 2010, hitting drivers hard. Some drivers have seen the cost of premiums double.

At one stage last summer premiums were rising at a rate of close to 40pc.

The average motor premium is now €478, according to calculations based on Central Bank data.

Junior Minister Eoghan Murphy, who is overseeing measures to reduce motor premiums costs, said recently there were early signs cover costs may stop rising.

In an update on how measures to contain premium rises are progressing, Mr Murphy said price rises have eased off.

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