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THE AVERAGE COST of motor insurance in Ireland has risen by 42% in the last decade despite a 2.5% reduction in the average cost of individual claims over the same period.
Details contained in the Central Bank’s first Private Motor Insurance Report of the National Claims Information Database (NCID) also shows that between 2009 and 2018, the overall frequency of claims by motorists fell by 40%.
That figure included a 20% reduction in the number of injury claims and a 43% reduction in the number of damage claims.
The NCID was established following a recommendation by the Government’s Cost of Insurance Working Group (CIWG).
The publication of today’s figures form part of a commitment by the Central Bank to improve transparency in Ireland’s insurance market and to promote a greater understanding of issues relating to how it functions.
The statistics also show that injury claims which were settled through litigation between 2015 and 2018 had an average compensation cost of €45,390, as well as average legal costs of €23,031.
However, the Central Bank warned that these figures included a number of “very large settlements” which had a significant impact on the statistics.
Litigated settlements costing more than €100,000 accounted for around 15% of claimants over the three-year period, but accounted for 53% of total litigated costs.
By comparison, the 85% of injury claims worth less than €100,000 which were settled through litigation had an average compensation payout of €23,199, with average legal costs of €14,684.
These figures compared with average compensation of €22,631 for those who settled through the Personal Injuries Assessment Board, where average legal costs were €753.
Mark Cassidy, director of economics and statistics at the Central Bank, hailed the figures as a positive step for data availability.
“The Central Bank is focused on ensuring that the insurance sector sustainably serves the needs of the economy and its customers,” he said.
“This includes ensuring that claimants can have confidence that insurance claims will be paid when required and that consumers have clear information to allow them to make informed decisions.”
The drop in the number of claims saw the average cost of claims per policy fall by 2.5% from €437 in 2009 to €426 in 2018 – including a drop to €375 in 2013.
But the average premium per policy increased by 42% from €498 in 2009 to €706 in 2018. That included a small decrease to €435 in 2013, followed by an increase of 62% to €706 last year.
However, the Central Bank said that this data highlighted the importance of the cost of claims to the level of insurance premiums.
It added that the report showed the cyclicality of the insurance market, in particular the growth in insurance premiums relative to the cost of claims.
“While the Central Bank does not have a mandate to fix prices in the insurance sector, today’s report will assist the Cost of Insurance Working Group, Government, Oireachtas and wider stakeholders in their consideration of the relevant issues,” Cassidy added.
But Sinn Féin TD Pearse Doherty described the figures as a shocking indictment of the insurance industry, which he said had waged “a campaign of disinformation” for a number of years.
“The ‘compo-culture’ line trotted by the industry was a convenient story to cover its own price-gouging activities,” he said. “That line does not stand up to scrutiny.”
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An absolute scam industry. And what is the government doing?
@B Collins: Delighted we fully deserve every drop of it….all the ripoffs, health, banking, legal, utilities, housing the list is endless……we vote for it so anyone who votes FFG just remember that its your voting that is causing this, they are up to their neck in big business so suck it up folks!
@B Collins: They cant interfere in ‘the market’, their words not mine
@B Collins: what they do best. Be the same.
@B Collins: Sure Leo was disputing that last week . He reckons the opposite . Get the Man out of his Iron Throne we need a John Stark Man of The People for the People . Not some little Godfrey .
@B Collins: what are the government doing? they are in on it.
@B Collins: Here’s hoping Pearse Doherty and Co are involved in the next administration.
@Mick Andrews: Ok, it’s fine to hope, but what, realistically can they do here that others haven’t managed up to now?
@Peter Hughes: well said. FFG voters give yourself a big pat on the back. You are aiding and abetting all this carnage
@Peter Hughes: no …. no point shouting out FFG. I agree we deserve to suffer but if we were more French and just down tools and fuking wreck the place like the French we’d be better off. No matter the party in charge we’d still get the Philips Head job. We need to rare up and really hold them to ransom French style.
@Bernard Sweeney: They could maybe, I don’t know, TRY!
@Rob: they can’t interfere in the market they created, that’s the issue.
Pull down the legislation and allow more competitors to enter the market.
@B Collins: the government get a % of each policy sold. So they are taking in millions as well. That’s what the government are doing
@B Collins: the government get a % of each policy sold. So they are taking in millions as well. That’s what the government are doing
@B Collins: they take in a percentage of every policy sold. That’s what they do
@B Collins: argee you true. Feck insurance companies adventure robbery people money
A cartel, plain and simple.
@Fred the Muss: one many in this country. The government do nothing and the sheep vote them in every time.
@Fred the Muss: european authorities launched a dawn raid and confirmed they were Investigating the irish insurance market YEARS ago ? Is anyone in govt asking them what happened ?
@Fred the Muss: a pyramid scheme
@Dave Hammond: As soon as it was found that some of the “right type” of people were involved, it was quietly swept under the carpet like everything else where the “right type” of people are involved.
The thing about car insurance is that you are required by law to have it. So the insurance companies will charge what they like. The average Joe would rather pay extortionate costs than risk being hauled in front of a judge. The new Zealand model world best. Once there is a valid NCT, you are automatically covered by 3rd party fire and theft. You pay extra for comprehensive.
@Peter Cavey: same in Australia, your 3rd party insurance is included in your annual registration fee. Comprehensive then costs around $500 per year and anyone can drive your car.
@Peter Cavey: I wonder if we started a protest movement for that could we get the New Zealand model. It’s implementable and would save a lot of people money and hassle. They’ll say jobs will be lost, but when people have more money in their pockets they’ll spend it on other things and create local jobs. Also insurance jobs are really boring and unskilled, it’s not like losing SR Technics again.
@SC: Meanwhile they extort us for insurance we legally need on our cars to get to our jobs to..ya know, live…oh and also to pay our crippling taxes which pay the huge salaries of the people who allow this to happen…
“Creating jobs” is a bullsh@t spin term used by the wealthy to justify screwing over the working and middle class and making them *grateful* for the opportunity.
I could pay you a fiver to work for me for 40 hours a week to clean my house, do my washing, cut my grass, wash my windows etc I’ve created a job but I’ve also created poverty – good luck living on a fiver a week – we need to stop buying into this nonsense idea that “job creation” is a good thing job creation with a decent living wage is a good thing…
@The Guru: Way too logical for that to even be considered over here..sadly.
@Peter Cavey: In Portugal the CAR is insured. No messing about with what job you do etc. People with a valid license , can drive any cay as long as they get written permission from the owner. Overall it’s about 5 times cheaper to get car insurance than in Ireland.
@Peter Cavey: If it’s for the benefit of the Irish people over big business, FFG will never ever allow it to happen. Business first, Irish last. Always.
@SJF: well said.. but it’s happening in every walk of life. All these big companies think they have one over us. But we hold the true power. With regards rent… Everyone join together in a union and just stop paying rent. Enough people do it for long enough TOGETHER, they won’t be long in checking their ideas. Same for insurance. We need to come together as one. But we are all sheep following these “rules” and “laws” thinking something terrible is going to happen if we don’t do as they say!! Can’t land us all in prison if we join together.
@The Guru: Well that’s not going to help people like me who are getting fully comp for less than 600 with no registration fees etc.
@Caoimhín O’Cheallacháin: Lets wipe out TV license first!
@Peter Cavey: Yea but this is Ireland tho. We’re not really used to running things ourselves. It has only been 100 years or so.
@LD: nah sorry… I don’t have any qualms with the TV licence fee. Yes rte needs reformed but I believe in a national TV broadcaster. Important to the nation. Greedy insurance companies and greedy multinationals I want to take down!!
Zero points and full no claims, In the last few years my meticulously maintained and NCT’d 2004 german cruiser TPFT premiums…
2016 €550
2017 €680
2018 €760
2019 €890
2020 €1040
Absolutely scandalous, luckily I live and work in the city so im parking up the car for 2020 and cycling or using public transport. I refuse to pay out that money because the insurance industry and government see my car as being “too old” and due an upgrade. Im not going to be suckered into buying a new car when I already have a perfectly good vehicle.
@: you are dead right
@: But they are happy for you to NCT your motor and take your money, your car can be assessed as roadworthy and fit to drive but your insurance company want a bite of the cherry and to line their pockets with a little extra, on top of the extortionate premium they already want from you. Government should insist if a car holds an NCT cert then no extra charges can be imposed otherwise what is the point.
@: agree completely and once your vehicle passes the NCT and is therefore declared road worthy by the state this should not be used as a negative insurance criteria.technically you could have a new car that’s less road worthy than an old one depending on circumstance.
They’ll get you if you ever try to get insurance again
@Derek Lyster: Your insurance no claims whilst not driving is valid for 2 years. Im hoping in the next year or so with the pressure from Pearse Doherty TD etc that there will be a considerable change in the industry…
Be careful doing that. My other half got rid of his car and went named driver on mine for just over 2 years. It was cheaper to run 1 car between us and use public transport to get to work. Circumstances changed and we needed to get a second car again. He was treated as a brand new driver because it had been over 2 years since his last insurance policy in his own name. Couldn’t use his previously accumulated no claims bonus in his own name either and got shafted with the price he had to pay. Some companies wouldn’t even quote him as he didn’t have his own policy in the last 2 years, including Aviva which he had been insured with for 8 years without a single claim before taking the 2 year break. Ridiculous.
@Caireann Rua: Got caught like that when I moved home from the US in 2015. Brought home my US no claims details and I was laughed out the door. 20 years no claims in Ireland and the US and they treated me like I only turned 18 and was looking for my first policy.
@paul gurney: would have to say that would be very rare.
@: so your going to ‘park your car up’ for a year ? you do realise that the next time you come to insure ANY vehicle you will have lost your no claims entitlement if you dont insure your current vehicle . in other countries your n.c.b. carries over for up to 3 years -but not here – if you let your policy lapse for more than 6 months – you lose your n.c.b !
@Eric Davies: Your No Claims Discount (NCD) will be valid in Ireland for 2 years after the expiration of your last policy (assuming that you’ve not been involved in an accident/claim since its expiration while driving under another policy – remember this would also including driving a car under a car rental policy).
‘Averages’ are being manipulated. Cost of insurance is blatant robbery in this country. Good drivers are being excessively charged for claims that have nothing to do with them. Young drivers are being excessively charged before they ever do anything wrong. An older car shouldn’t be dearer to insure than a fresher car once it has passed nct. Bottom line – This is all about profits, doesn’t matter how well you drive.
@Kath Noonan:
“Good drivers are being excessively charged for claims that have nothing to do with them”
That’s because of the uninsured drivers fund.
“Young drivers are being excessively charged before they ever do anything wrong”
The are statistically the higher risk category of driver.
“An older car shouldn’t be dearer to insure than a fresher car once it has passed nct”
We all know that the NCT is not really worth the paper it’s written on. Older cars are also more likely to more suddenly develop a problem that could compromise safety. Newer cars less so.
“Bottom line – This is all about profits, doesn’t matter how well you drive”
Not so, I’ve got 16 years no claims and am paying less than 600 fully comp, my car is nearly 2 years old. I’m being rewarded for this.
Full disclosure: I don’t work for or vote for FF/FG an I’m not employed by anyone in the insurance industry.
@Bernard Sweeney: ha ha 16 years no claims and you think €600 is being rewarded. That’s the whole problem right there €600 is a rip off
@Bernard Sweeney: There’s some smell of BS from that post.
@Bernard Sweeney: I have similar stats and my last quote was 1200. They’ll hike yours soon, don’t worry
@Bernard Sweeney: not necessarily true about the nct there Bernard. An older car doing 5k miles a year is far less likely to develop problems than a two or three year old car doing 50 k tyres bushings suspension brakes etc all gonna be worn out but these newer cars are exempt for two or three years
Pearse Doherty doing great work on this. Where are the government?
@Peter McGlynn: They are getting ready to go on holidays for a month.
@Peter McGlynn: Pearse should b leader of SF. Mary Lou dragging them down.
I have a full NCB since the 90s a few years back one insurance company was quoting me €1000 for a car worth approx €1500 at the time.
When I asked why was a work colleague insurance have the price of mine even though they had a new car worth about 30k.
They couldn’t give me an answer then they started this thing of cars over 10 years not insuring them due to their age, So what’s the point in the NCT if insurance companies refuse to insure older cars.
@Dave Byrne: Because the insurance companies know the NCT is a pile of crap.
@Bernard Sweeney: Who said the car is 10 years old? Do you work for an insurance company?
But Leo Varadkar only told us this week that insurance premiums were lower and now the Central bank is saying NO, they have increased by 42%,wonder those expensive consultants Leo pays a fortune to would at least get the facts right before they let him open his mouth and make a fool of himself. The rest of us just open our renewal notice and see we are being taken to the cleaners.
@Honeybee: Leo is a stranger to the truth
@Gus Sheridan: Baldy just says what his big business bosses tell him to say
Corrupted cartel
somebody I know has had years of trouble free driving , no claims ever, but his cover actually doubled in cost last year. can the Insurance companies explain that , I wonder.
@RJ.Fallon: another reason never to go home to Ireland again. The government try to tempt emigrants to return home then screw the life out of them when they do. Must be the most expensive country in Europe to live in.
Drain the Dáil!
@John Flood: Even Ringsend would reject it.
@Sean O’ Donovan: Leo’s ringsend
Did leo not say the other day that car insurance has dropped by 30% bit of a conflict in figures here
@Karl Charlie: Enda’s mate with the two pints told him I think.
What’s the story with the photoshopped accident in the cover picture… Are insurance companies photoshopping accidents now to boost supposed claims
@tipptop9: yeah they should use a real photo where somebody has died to traumatise the people affected!
@tipptop9: very tidy scene indeed
Mrs Doyle swept up before the shot
Why not write an article about the legislature? And how they’re making the biggest profit out of any claims? The fact that legal expenses make the cost of fighting fraudulent claims too expensive? Do some proper investigative journalism.
@mcdb06: This is a copy and paste site, no chance of them doing an investigation.
Get rid of car insurance
@Den Sullivan: Replace it with what then?
It’s just another Legal scam these day’s were having no claims bonus each year results in your premium going up and up .
This profiteering makes me sick. Did you know that if you miss a direct debit payment your premium goes up because you’re deemed to be a higher risk driver. I believe your premium cost should be linked to the value of your car and your history of safe driving. Assessing an individual based on aspects not directly connected to motoring like your banking habits is unfair.
just heard on the radio some fella from the insurance industry saying they only made a 9% profit last year ! and that claims are being exaggerated in order to get bigger payouts – do they never learn ?
Well done FFG voters. You are aiding and abetting all this fraud. You deserve all the financial misery that is heaped upon you. Keep voting FFG
And again goverment doing nothing surprise surprise.
It was in the news recently how a couple had a €75k defamation suit thrown out in court because they’d been asked by restaurant staff to pay their bill. A whopping €30 bill. And this goes to court. An insurance company would have to set aside €75k while this is ongoing, then pay investigative fees, then legal fees. And got it thrown out. In the time they have to set aside that money, it impacts the premiums of others. Not extrapolate that for all other claims, legitimate and fraudulent alike that reserves are set aside for. Then there is claims that are actually paid out. Without legislation that caps certain injury awards, and punishment for those convicted of lodging fraudulent claims, it’s is always going to lead to increasing premiums for everyone else
@mcdb06: balderdash good sir.
I’ve been told by a barrister over on Twitter that page 12 of the report says costs have come down as I mentioned these cases were driven by the legal profession!
Slightly off topic, my son was trying to hire a car for when he’s home for Christmas and was asked for a deposit of €1500 to cover insurance, have these companies not got insurance cover already and why do they need to insure the car twice
@Brian Nevin: Tell your son to photograph and video the car when he takes possession of the hire car in case there are any’ scratches, marks,dents,’ otherwise when he returns the car they will hit him with a huge bill. Better safe than sorry.
Blame both insurance cartel & fake injury fraud insurance and should big fine €100k for who fake injury
My renewal doubled in price this year without having had any claims and having a full no claims bonus. Needless to say I moved to a different insurer after being with the same company for 10 years! It is a sham and needs to be regulated like everything else!
What an awful country to try and get car insurance. A racket that’s plain for everyone to see. NZ and OZ have a great model for car insurance. You could buy a runaround car for the same price as insurance in some cases. WTF
Is anybody surprised!!!
Well, that should shut up the sheeple who echoed the industrie’s claims it was because of all those high payouts.
My renewal was €200 cheaper than last year, very surprised.
It’s ok, Super Leo has spoken on the issue, insurance has “levelled off” ! (They haven’t levelled off, a stupid thing to say, and even if they have it’s a levelling off at a hugely inflated price)
“Leo Varadkar criticised those involved in insurance fraud”
https://www.thejournal.ie/varadkar-insurance-costs-4926374-Dec2019/
If, we all payed our motor insurance on the same day (not realistic I know) we would have a completely different power struggle on this issue, one that we would have the upper hand, as it is we all stand alone and cannot win.
Could people work together to move renewal date to coincide with each other or could we create groups of people who renew on the same day?
We are being completely ripped off, and the lousy government will do nothing to protect people from it. Disgraceful.
I got a great excuse as to why my insurance went up by 300 Euro this year. . I quote ‘the make of car you drive had a lot of claims last year ‘ I have gone from 400 e to 1000e in four years despite not having a claim ever in my life. Now there ya go.. I shopped around and got a reduction of 300e . Why should I have to though. Strongly thinking of getting rid of my car and go on the dole. I dont live or work in an area with public transport.
@Loretta stiletto: As a matter of interest Loretta, what make of car is in question, I thought I had heard most excuses for overcharging but that’s a new one,awful way to treat a customer.
Insurance here is fraudulent and the solicitors and doctors faking injury claims for the percentage of the payout should be jailed.
Outrageous
The car insurance industry has free rein to run riot in this little ripoff republic of ours. Cartels operate at their leisure and don’t even attempt to obscure the fact. They’re aided and abetted by the brokers who will tell you they’re impotent in the matter. But to add insult to financial insult our “Government and Regulators “ are totally complicit in the ripoff.
The EU only take an interest in ripoff Ireland if the ordinary Joe Soap in danger of benefiting from Government policies, they will then declare an unfair advantage.
I’d say IREXIT is looking more & more likely with every new insult.
Feck insurance adventure robbery people money
Excuse me if I have this all wrong, but before we hang draw and quarter the Insurance Industry, do we not need to look at total amounts paid out and not averages? The number of road users is going up. Even if cost per claim is going down, if there are a lot more claims it would still require an increase in premiums to pay for it?
@Tomas O’Neill: People don’t want to listen to facts. Much rather believe that are being illegally wronged by ‘greedy’ companies. Why is nobody looking into the legal profession and how they profit the most from insurances claims? And they are self regulating. It’s literally ridiculous that nobody is investigating it.
Dont know whats happening there now but when i lived in California in the eighties, you didn’t have to have motor insurance – you could drive uninsured if you choose to – it was called being self insured; i think it was also similar in other western states
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