Insurance firm’s collapse could add an extra €30 to €40 to every vehicle insured

Motorists are facing a further hike in insurance premiums after being left to foot the bill for a collapsed insurance company.

The move could add an extra €30 to €40 to every vehicle insured at a time when insurance policy costs have increased by 25% in the past year with a similar rise already expected over the coming year.

There are fears it will also set a precedent that would automatically place the burden for any failed motor insurance company on ordinary drivers.