Insurance for cars likely to fall after ruling

Car insurance premiums are likely to fall “in the short to medium term” following a Supreme Court ruling over the Setanta Insurance collapse.

A junior minister said while the Department of Finance was not in a position to make a demand of any insurance company as to how they price their product, “it will be seen as a breach of faith” if companies were not willing to drop prices as a result of last week’s ruling.

A judgment has overturned previous court findings the Motor Insurers’ Bureau of Ireland (MIBI) should pick up the bill as a result of the demise of the insurance company. The MIBI is funded by the insurance industry.