Car insurance premiums continue to rise

LESS than six months after a Government report acknowledged a dramatic rise in the cost of car insurance across Ireland, a new survey has found that the vast majority of motorists have been hit with a hike in premiums over the past 12 months.

Research from AA Ireland revealed that 83.8% of drivers reported an increase in insurance since last year, while 64.46% said they have seen the cost of their cover rise by at least 15% over the same period.

Almost a third (30.48%) of the 3,000 drivers interviewed by the motorists’ organisation revealed that their premiums have shot up by between 15% and 30% since their last renewal, while just under a quarter (24.82%) reported a year-on-year increase of between 30% and 50%.

At the start of the year, the Department of Finance’s cost of insurance working group – which was set up by Minister of State Eoghan Murphy to investigate the rising cost of car insurance in the State – published its first report.

In the January report, Mr Murphy said: ‘Throughout the country people are paying dramatically higher premiums for insuring their motor vehicles... it is clear that there is an overwhelming need to reform our insurance sector.’

Last night, the AA’s director of consumer affairs Conor Faughnan said the survey highlighted the need for urgent action from the minister.

Mr Faughnan said: ‘With proper legislation and action from government to tackle rising premiums, we will wind up with a better insurance industry.’

The survey also found that drivers aged between 35 and 46 were the most likely to have seen an increase in their premium, with 87.69% of those in this age group reporting a year-on-year increase in their premium of at least 5%.