Monday 21 August 2017

Motor premiums down by 10pc - but drivers yet to feel the benefit

A policy that cost €500 three years ago is now €220 more expensive, even with the latest fall in insurance rates. Stock Image
A policy that cost €500 three years ago is now €220 more expensive, even with the latest fall in insurance rates. Stock Image
Charlie Weston

Charlie Weston

Motor insurance premium costs fell sharply in June.

New figures from the Central Statistics Office show the cost of the average premium is now down by 10.2pc in the last year.

It is the first dramatic fall after years of turbo-charged rises.

The CSO said the cost of the average motor premium was down 0.5pc in June.

However, most drivers have yet to see the falls in the cost of insurance in renewal quotes.

This is because it comes after hikes of up to 70pc at one stage in the cost of cover over the last while.

Premium levels were flat in December, January, February, March and April. Premium rates fell in May and June.

The last rise in the cost of cover was in November. But in the last three years the cumulative impact of the changes have seen the cost of cover jump by 44pc.

This means a policy that cost €500 three years ago is now €220 more expensive, even with the latest fall in insurance rates.

Insurers are under huge pressure to stop pushing up premiums due to a public backlash.

Last week's dramatic dawn raids on insurance bodies here by European Union regulators has also put the industry under renewed scrutiny.

The EU is investigating allegations that insurers are operating a cartel here to restrict new entrants to the market. It is claimed this partly explains the surge in insurance costs in the last three years, claims strongly rejected by the industry.

Irish Independent

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