Half of motorists see significant rise in insurance costs

Despite recent research from the CSO indicating that the cost of motor insurance has dropped by 12.8% in the past year, many motorists are seeing premiums rise at the time of renewal, according to AA Ireland.

Half of motorists see significant rise in insurance costs

In a survey of more than 4,000 Irish motorists, more than half (54.06%) said they saw a significant increase in their insurance costs at the time of their last renewal. A further 23.35% said they had seen their insurance costs continue to rise year on year.

“While we have seen a few headlines recently indicating that insurance costs are dropping, it’s important to bear in mind that this is based off an aggregate of all available data and, as a result, there are many motorists out there that have yet to see their premiums start to dip,” said Conor Faughnan, AA director of consumer affairs.

“Even worse, our research indicates that the poor response to this crisis from Government has resulted in the majority of motorists still seeing the cost of their cover increase or, at best, stay at a level much higher than they would have paid in previous years.”

AA Ireland has been lobbying the Government on five key reforms it wants implemented to bring insurance premium rates down.

The Government set up a Cost of Insurance Working Group that was initially headed up by then junior- minister, and now Cabinet Minister, Eoghan Murphy.

Junior finance minister Michael D’Arcy is now chairing the working group.

“The issue of rising premiums first presented itself in 2015 and a number of bodies, AA Ireland included, have been campaigning for government action to resolve the crisis since then,” said Mr Faughnan.

“Unfortunately, all we’ve seen from Leinster House is the publishing of a strong set of recommendations but no follow through on actually enacting any changes.”

The AA also warns that there appears to be a decline in the number of people shopping around to try to save on their car insurance costs — an issue it describes as a sign of the fact that Irish motorists have been forced to become accustomed to higher premiums.

“The average motorist is still paying 20-25% more for insurance than they would have in 2015,” said the AA.

More in this section

Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.