Motor insurance premiums jumped by 9% during first half of last year

Motor insurance premiums in Ireland jumped by 9 per cent in the first half of last year, with further increases expected.

The latest review from the Central Bank has blamed inflation and soaring repair costs for the increases.

Between January and June last year, the average written motor insurance premium cost €616 compared to the €567 recorded throughout 2023, according to the Central Bank's NCID Private Motor Insurance report.

Since the second half of 2022, the average written premium has increased by 12 per cent.

While the average premium increased during the first half of 2024, it is still below its peak during the period July to December in 2017. At that point, the average insurance premium cost €729.

However concerns are mounting as the Government considers a proposal to increase personal injury awards, which experts warn could push premiums even higher.

The Minister for Justice, Jim O’Callaghan, is currently considering a recommendation from the Judicial Council that personal injury awards be increased by almost 17 per cent in the coming weeks.

The Alliance for Insurance Reform has called for the matter to be debated in the Oireachtas.

"Notwithstanding that awards are higher here than in most other countries and the relatively short time the current award guidelines are in existence, if adopted it will lead directly to even greater increases in policyholder premiums," the group said in a statement.

"Motorists, businesses, sporting, community and voluntary groups simply cannot afford for this to happen."

"Given the adverse consequences of such an increase and the myriad of policy considerations involved, the proposal to raise personal injury awards needs to be put before the relevant Oireachtas Committee for considered, public debate.

"We urge Minister O’Callaghan and the government to take this course of action in the best interest of policyholders."