The average cost of motor insurance in Ireland increased by 9% between 2023 and 2024, reaching €623 per policy, according to new figures from the Central Bank. The regulator’s latest report attributes the rise largely to growing repair costs and highlights a continued strain on consumers already grappling with the cost-of-living crisis.
The report found that the average expected cost of claims per policy rose by 3% to €397 — the highest level recorded since 2014. Damage-related claims, including vehicle repairs, climbed to €192 per policy, while injury claim costs remained below pre-pandemic levels at €205.
The Central Bank said that while smaller injury claims have fallen in cost, larger claims have become more expensive, offsetting much of the progress made in recent years. Injury claim costs overall remained steady between 2022 and 2024.
Operating profits for motor insurers also declined, falling to 4% of total income in 2024 — down from 8% in 2023 and 12% in 2022.
“In 2024, damage claims accounted for 54% of settled claim costs, a significant increase from the 29% average observed between 2015 and 2021,” said Robert Kelly, the Central Bank’s Director of Economics and Statistics. He added that “the total cost of injury claims settled in 2024 was 16% lower than the average from 2015 to 2019.”
The Alliance for Insurance Reform criticised the rising premiums, warning they are adding pressure to households already burdened by rising living costs. Speaking on RTÉ’s Morning Ireland, its chief executive Brian Hanley said the main driver of premium hikes has been the surge in vehicle repair expenses.
“We’ve seen similar increases in other countries due to repair costs linked to supply chain issues and higher labour expenses,” Hanley said. “However, reforms like the personal injury guidelines have helped stabilise and reduce awards — by about 25% in recent years.”
Alliance board member Ivan Cooper added that injury claims still account for over half of total motor claim costs, calling for more cases to be resolved through the Injuries Resolution Board to reduce expenses.
Insurance Ireland, which represents insurers, pointed to legal costs as a key factor undermining improvements in the claims environment. Chief executive Moyagh Murdock said: “Legal costs for litigated claims were 27% higher in 2024 than the 2015–2019 average, with fees accounting for 48% of the total cost for claims under €100,000. This continues to offset the benefits of lower compensation awards.”
