Claims are way down, premiums are way up.
A new report on the cost of car insurance, compiled using data from the National Claims Information Database, has been published by the Central Bank of Ireland today (16 December).
The report found that while premiums fell between 2009 and 2013, they have risen by 62% since then. The steepest increases have been seen for third party only policy premiums and third party fire and theft policy premiums. Third party only premiums have more than doubled in price since 2009, jumping from less than €400 to €850.
This is despite the fact that over the same period, the frequency of claims has fallen by 40%.
As of 2018, the average cost of a premium per policy was €706.
Similarly, the cost of an individual claim has also increased by by 64%, thanks in most part to costs of injury claims rising by 52%. The cost of damage claims has only risen by 2% in the last decade. The cost of the average claim is now €4,779. The cost of the average injury claim is significant higher, at €47,674.
Third party injury claims make up less than 1% of all claims, with most claims falling under the umbrella of "Accidental damage" or "Windscreen".
According to the report, the total private motor insurance premiums earned in Ireland in 2018 was €1.5 billion.
The report can be accessed in full
here.
