Sunday 23 October 2016

Inflation up as car, health and home insurance costs increase

Charlie Weston, Personal Finance Editor

Published 09/06/2016 | 11:26

There are steps you can take to reduce insurance costs.
There are steps you can take to reduce insurance costs.

THE cost of insuring cars and commercial vehicles has gone up again.

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Motor insurance premium rates were 35.2pc higher in May compared with the same month last year.

The figures, which have been just released from the Central Statistics Office, also show the cost of petrol and diesel rising in the month.

And other insurance costs have gone up, according to the consumer price index.

Home insurance was almost 10pc more expensive in May compared with a year ago.

Health insurance premiums rose by 6.5pc, as VHI, Laya, Aviva and Glo all raised the cost of premiums in the last few months.

Rents are almost 10pc higher than a year ago, even though landlords have been restricted from raising the cost of renting a home to every two years.

And drinkers and smokers have been hit.

The cost of a pack of cigarettes was 6.7pc dearer last month compared with a year ago, with spirits up 4pc.

Petrol and diesel prices are down on a year ago, but began to creep up in May.

The cost of motor insurance has become a huge political issue, with a Fianna Fáil motion seeking the setting up of a task force to look into why premiums are spiralling set to be passed in the Dáil after Fine Gael decided not to oppose it.

Despsite the rises in a range of key expenditure items for households, the overall level of inflation was flat in May compared with a year ago. For the month itself prices were up 0.5pc.

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