Big payouts to blame for high car insurance costs, say insurers

Insurers are blaming big compensation payouts for high car insurance costs.

An Oireachtas Committee will grill Insurance Ireland today to find out why prices are still so steep.

There has been a 12% reduction in the last 12 months, but industry bosses say premiums will not come down further until courts stop awarding huge sums to claimants.

Prices still have a long way to fall after a 70% increase in recent years.

CEO of Insurance Ireland Kevin Thompson says fake claims are also part of the problem.

"This is not a victimless crime.

When people take these cases it does drive up the cost of insurance.

"Equally, if people perjure themselves on a stand in front of a judge there should be consequences for that action."