Motor insurance claims hit record €414m in first half of 2024, says Central Bank

Motor insurance payouts hit €414m in six months, driven by rising costs, legal fees, and growing damage claim volumes

Between January and June 2024 there were about motor insurance 87,700 claims which resulted in €231m being paid out in damage claims, while injury claims stood at €183m.

The first half of 2024 saw the total value of settled motor insurance claims hit €414m, between damage and injury settlements, which is the highest level on record, new data from the Central Bank of Ireland shows.

During the first half of 2023, €320.8m was paid out in settlements which increased to €339.7m during the second half of that year.

According to the latest private motor insurance report from the Central Bank, between January and June 2024 there were about 87,700 claims, which resulted in €231m being paid out in damage claims, while injury claims stood at €183m.

The total cost of damage claims settled during the first half of 2024 was 179% higher than the average seen between 2015 and 2019.

The average cost of a damage claim stood at €3,150 — up 24%. The report said this was primarily driven by an increasing trend in the total cost of damage claims since 2022.

Total injury claims costs increased by 13% in the first half of the year, but were still 16% lower than the pre-covid average.

For injury claims under €100,000, the average claim cost stood at €22,651, of which €7,128 is legal expenses. When claims for over €100,000 are included, the average increases to €38,553.

There were 283 claims settled for over €100,000, which combined were valued at €82m.

The data in these reports goes back to 2015 and is presented in six-month blocks.

Damage claims generally make up the large majority of claim numbers, accounting for 94% during the first half of last year.

The report noted an increasing proportion of motor insurance policies were for comprehensive cover “which allow policy holders to make accidental damage claims”.

“The increase in damage claim costs may be influenced by this higher coverage of comprehensive policies and the willingness of policyholders to make damage claims due to inflation and cost-of-living pressures.

There were 22,000 accidental damage claims in the first half of 2024 — up from 17,432 in the prior six months. The average claim cost stood at €5,561.

Employers' and public liability insurance

The Central Bank also released its 2024 mid-year report on employers' liability insurance and public liability insurance cases.

Across these two areas, the total cost of claims settled during the six-month period stood at €144m, a 10% drop from the prior six months — spread across about 3,800 claims.

In terms of injury claims that settled for less than €150,000, the average total cost of settling directly with an insurer was €23,739, average settlements through the Injuries Resolution Board stood at €27,912 — both increased by 11% compared to 2023.

For claims settled through litigation, the average settlement stood at 52,372, of which nearly half, €24,786, was legal expenses.

Across all channels, the average compensation cost for claims that settled for less than €150,000 was 12% lower in comparison to 2020.

The compensation payouts in this area have been coming down since the introduction of the personal injury guidelines in 2021. 

Justice minister Jim O’Callaghan is set to bring a proposal to Cabinet that personal injury awards be raised by 17% on foot of a recommendation from the Judicial Council.