Wednesday 24 January 2018

Dramatic drop in cost of motor insurance new figures show

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Charlie Weston

Charlie Weston

There has been a dramatic drop in the cost of motor insurance.

New figures show there was a plunge of 14pc in the cost of cover in the last year, the biggest drop since the insurance crisis hit.

Central Statistics Office (CSO) inflation figures show the cost of motor insurance was broadly steady in the month of August, but is now down 14pc compared with the same month a year ago.

It comes after premiums have risen by 70pc on average over the last three years.

But motor insurance experts said that motorists were still paying elevated premiums, and it will take a number of months before the easing off in premium-price pressures is reflected in renewal quotes.

The new figures showing a fall in insurance costs come as a number of insurers in this market have returned to profitability.

The industry has been helped by a Government task force that is introducing reforms that are aiding the industry.

Motor insurers have been under pressure to ease back on premium hikes after European cartel-busters carried out dawn raids on them and their representative body in the summer.

The CSO said prices across a range of goods and services in the economy were up 0.4pc in August, and by the same percentage in the past year.

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