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Saturday 24 February 2018

Car insurance prices jump a staggering 38pc in one year

(Stock picture)
(Stock picture)

Personal Finance Editor

MOTOR insurance premiums have continued to rise.

They were up 38.3pc in the year to July, according to new figures from the Central Statistics Office.

Overall inflation was up 0.5pc last month compared with the same month a year ago.

The rise in motor insurance costs means a premium that was €500 last year will now be around €190 dearer.

Premiums look set to keep rising, despite some in the insurance industry arguing that premium rates are close to peaking.

Two of the largest insurers in the market, RSA and Aviva, warned last week that they expect premiums to keep going up this year.

RSA said injury claims continue to rise and Aviva said it could not rule out more premiums increases as claims costs continue to be a serious challenge to it.

The higher cost of motor insurance is despite lower petrol and diesel prices and a reduction in the price of motor cars.

Rents were up by 8.7pc in July compared with a year ago, a slight decrease on the rate of increase in previous months as the rules limiting rent rises to every two years take effect.

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