THE COST OF motor insurance premiums rose again last year.

That’s according to the Central Bank, which published new figures today outlining how the average written premium per policy rose to €655 in the first half of 2025, up 4% on figures from the previous year.

Written policy count (the total number of insurance policies issued and initiated by an insurer) also climbed 3% since 2024.

Compared with the years before covid (2015–2019), both the number of car insurance policies sold and the amount people are paying for them were almost a third higher in the first half of 2025.

In separate findings by the Central Bank, it was confirmed that the total cost of claims settled in the first half of last year was 25% higher than the pre-covid average, and 2% higher than 2024.

The total cost of claims settled in the first half of 2025 was €374 million.

Damage claims accounted for much of the increase, with costs up 8% on the previous half-year and 155% above the pre-Covid average.

The average cost of a damage claim for insurers increased to €3,146.

In contrast, settled injury claims fell by 4%. The average cost across injury claims was €35,774.

The report also shows that 85% of all injury claims were resolved under the Personal Injuries Guidelines, including 70% of litigated claims.

Settlements through the Injuries Resolution Board are broadly in line with court awards but are delivered faster and with much lower legal costs, according to the Central Bank, helping to keep overall claim costs more predictable.

Commenting on the report, Minister of State Robert Troy claimed the data shows the Government’s reforms are “delivering lower and more predictable injury claims costs” but stressed that insurers must ensure these savings are reflected in premiums.