The Central Bank's report indicates a significant rise in motor insurance premiums, with an 8% increase noted in the year leading to May. The rise in claims, particularly a 23% increase in settling costs over a six-month period, is driving concerns among insurance reform advocates that premiums will climb further. Despite a 16% decline in injury claims compared to pre-Covid levels, the cost of motor damage claims undermines justification for increasing personal injury award guidelines. Legal costs reveal no advantage in opting for litigation over the Injuries Resolution Board.
Drivers have experienced a significant rise in motor insurance premiums, which increased more than 8% in the year leading up to May. Repair costs have escalated due to a 23% increase in settling claims in just the first half of last year, as reported by the Central Bank. The Alliance for Insurance Reform warns that these rising claims could lead to even higher premiums.
The cost of settling injury claims has decreased by 16% compared to pre-Covid levels because of a reduction in the number of claims resolved. However, the surge in motor damage claims indicates further increases in claim costs, undermining the justification for raising personal injury award guidelines.
Currently, both the average award amount from the Injuries Resolution Board and those litigated stand at €24,000, with no financial advantage for claimants to opt for the latter. Rising costs associated with resolving motor claims pose challenges to proposed increases in personal injury award guidelines.
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