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Thursday 24 August 2017

Hope of relief for motorists as insurance premiums 'stablising'

(Stock photo)
(Stock photo)
Charlie Weston

Charlie Weston

Hopes are rising that the upward trend in motor insurance premiums could be coming to an end.

It comes after one of the largest insurers said its premium income fell by 10pc in the first three months of the year. RSA said it earned €52.57 in motor premiums in the first quarter, down 10pc in euro terms on the same period last year.

There was little other detail provided by the London-headquartered group on whether the fall in premium income was due to lower pricing or a fall in sales.

But experts said this pointed to a stabilising of the cost of motor insurance.

Analyst at Davy Stockbrokers Emer Lang said in a note to investors: "The pricing environment appears to be stabilising."

The most recent figures from the Central Statistics Office show there has been no monthly increase in the cost of motor insurance for the third month in a row.

But the surges in the cost of cover over the last few years have seen premium rates shoot up by 60pc on average since 2010, additional information from the CSO indicated.

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.

Irish Independent

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