Further cuts in cost of motor insurance unlikely

THE cost of motor insurance, which has fallen by 35% in real terms over the past three years, is under threat, a top insurer has warned.

Axa boss John O’Neill, appearing before the Joint Committee on Enterprise and Small Business in Leinster House yesterday, said the positive motor claims experience between 2000 and 2003 resulted in significant cuts in the cost of car insurance.

However, over the last year and a half, the trend has gone the other way again despite the introduction of penalty points.