Consumers warned to check insurance policies amid 'perfect storm' of rising costs

Dermot Goode, of Health Insurance Ireland, said insurance companies will often bank on customers never reviewing the cost of their renewal policies.

Consumers have been warned to check insurance auto renewal policies ahead of a “perfect storm” of rising premiums, decreasing benefits, and the spiralling cost of living.

Average premiums across the health insurance sector rose by 10.6% in 2025, with Laya Healthcare’s 700,000 customers experiencing an average jump of 15.9%. 

Certain plans rose in excess of 19%.

Motor insurance premiums increased by 4% during 2025, to an average of €655 — outpacing the 2.8% rise in consumer inflation over the same period.

Dermot Goode, founder of advisory service Health Insurance Ireland, said that insurance companies will often bank on customers never reviewing the cost of their insurance renewal policies.

“The insurance companies have a fair idea how many people will engage and how many people won't,” Mr Goode told the Irish Examiner.

Mr Goode said that 50% of all customers' auto renewals will take place between December and February. 

Some insurance providers like Laya and VHI have issued two price hikes in 2026.

Marginal rises in insurance premiums could cost consumers a lot in the long run. 

A 3% rise in VHI’s most popular plan in October 2025 cost consumers €178.

“About 1.25m people are going to get their renewal notices in about two weeks' time,” Mr Goode said.

“It is incumbent on the consumer to pick up the phone and engage with the insurance companies directly or get advice.

“Older people in particular are terrified of making any changes to their cover, but they're the ones that can least afford these increases.” 

Mr Goode warned that many insurance companies have cut benefits on plans while raising costs.

"Consumers would naturally assume, if I pay more money, obviously I should have the same cover... but you can't even factor that in anymore," he said.

Consumer protection code

This year, the Central Bank’s consumer protection code took steps to tighten auto renewal policies on given lines of insurance. 

Across gadget, pet, travel, and electronic insurance, consumers now must opt in to the auto renewal, as opposed to having to opt out of the policy.

A spokesperson for the Central Bank said auto renewals can provide “a valuable benefit” to customers but can also hinder consumers' ability to shop for the most suitable or cost-effective product.

The consumer protection code decided against tightening auto renewal policies on home, car, and health insurance, arguing consumers could incur material damage if they were to pay up front and then have their insurance lapse.

Regarding policies that do auto-renew, insurers are required to notify people 20 business days in advance, clearly stating whether the policy is set to auto-renew.

'We are unfortunately time-poor'

Nicholas Charalambous, managing director at Cork-based financial advisors Alpha Wealth, said there is a “dichotomy” of consumers becoming more financially literate but unable to act on their knowledge.

“We are unfortunately time-poor, and that is inherently the issue," he said. "When these renewals happen, we just ignore the email or stick the letter in the drawer because it hits us at a time where we're not ready to deal with it."

He said little could be done by calling insurers and negotiating.

“Let's call a spade a spade, they're going to try and play with fear and tell you that the plan you're on is arguably the right one because it provides certain benefits and cover,” he said.

Mr Charlambous said that calling an independent insurance broker, or even consulting an AI chatbot, to shop for the best deals would help to ensure consumers weren't caught out in an increasingly costly market.

In October, the CSO calculated the rate of consumer inflation at 4.1%, its highest level since January 2024.