Department of Transport officials question motor cost hikes

Department of Transport officials last year questioned motor insurers’ claims that huge premium increases are justified given the “unprofitability” of the industry.

Motorists have been hit with spiralling costs of motor insurance over the past two years with premiums now 60% more expensive than in January 2014 and 35% higher than this time last year.

Insurers claim the price hikes are justified and necessary given the high cost of claims in Ireland, new solvency requirements, fraud and underpricing in previous years.