MOTOR INSURANCE PREMIUMS increased by 9% in the first six months of last year, according to new research by the Central Bank.

The average cost of insuring vehicles like cars, motorbikes and vans was €616 between January and June 2024. It is one of the largest costs recorded by the banking regulator in recent months and puts an end to a trend of price cuts.

This is despite new personal injury claim guidelines being introduced in 2021 to reduce the cost of insurance premiums across the board.

Today’s figures also reveal that there were 24,000 more policies created in the first six months of last year compared to the last six months of 2023. This grossed approximately €729m in written premuims to companies, the Central Bank report says.

Brian Hanley, CEO of the Alliance for Insurance Reform, says the increases in premiums has been driven by inflation and the increasing cost of vehicle parts. He said that the government must consider methods to reduce costs for people seeking to insure cars.

Hanley has urged the justice minister Jim O’Callaghan to reject a recommendation by the Judicial Council to increase personal injury pay outs because, he claims, this will fuel further increases in insurance costs for policyholders.

Today’s report is part of a twice-yearly analysis of the Irish motor insurance industry which considers data from roughly 98% of the market. A total of 13 companies operating in Ireland submitted information the report.