Wednesday 18 October 2017

Motor premium costs fall for second month

The cost of motor insurance premiums fell for the second month in a row in May (Stock image)
The cost of motor insurance premiums fell for the second month in a row in May (Stock image)
Charlie Weston

Charlie Weston

The cost of motor insurance premiums fell for the second month in a row in May.

New figures from the Central Statistics Office show that motor cover was 8.6pc cheaper last month than a year earlier.

It comes after a fall of 2.6pc in the cost of insurance in April.

Overall price changes were flat in May when compared with the same month a year earlier, the CSO said.

For the month of May prices across all categories were down 0.2pc.

The signs that motor insurance costs are falling comes after three years of incessant rises which have seen the cost of the average premium shoot up by 60pc.

The last time the cost of motor insurance fell was in December 2013.

However, drivers have been warned that the new falls in the cost of cover do not mean that they will necessarily get a lower renewal quote. This is because hikes up to April will be built into any renewal quote drivers get at the moment.

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However, the two months of falls, and a number of months of no rises before that, may indicate that we are coming to the end of surging premium rates.

Drivers have taken massive hits in terms of higher premiums, something which has seen many insurers now charging at a level that is allowing them to return to profit.

The latest inflation figures show that drivers have also benefited from falling fuel prices.

There was also a fall in the price of airfares, according to the consumer price index from the CSO.

But there was an increase in the cost of hotel accommodation and higher prices were recorded for alcoholic drinks and food consumed in licensed premises, restaurants, cafes.

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