According to new data from the Central Bank, the average cost of a private motor insurance policy decreased by 7% to €568 last year, reports RTE.
This is despite the cost of an average damage claim rising by 20% during the year, due to the inflationary environment.
The data indicates that damage claim costs have increased by 35% since 2020, and now account for 46% of all settled claims, up from 30% in 2021.
Furthermore, the value of claims as a percentage of premiums increased from 47% in 2021 to 61% last year, reports RTE.
“The data released today show that premiums continued to fall in 2022. Claims costs have increased, returning to pre-Covid levels, but driven by an increase in the cost of damage claims,” said Robert Kelly, Director of Economics and Statistics at the Central Bank of Ireland, reports RTE.
These findings are part of the fifth annual Private Motor Insurance Report of the National Claims Information Database (NCID), which is managed by the Central Bank.
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