Bad news, motorists.
Irish motorists could face a hike of up to 25 per cent in the cost of car insurance next year according to the Chief Executive of Insurance Ireland, which represents 95 per cent of the domestic and international based insurance sector in Ireland.
Speaking to the Irish Times, Insurance Ireland CEO Kevin Thompson warned that Irish motorists could well end up paying €300 more for a comprehensive policy than they did in 2014.
Thompson said that the potential rise in the cost of insurance premiums next year was down to a number of factors such as the accumulation of losses in the motor insurance sector in the last five years, insurance fraud and an increase in the amount of insurance claims being made in court.
“From any business model perspective it is just not sustainable,” Thompson told the Irish Times.
“We are into a cycle where there is only going to be serious upward pressure on prices. It is not good news for consumers.
“Motor claims costs are rising,” Thompson added.
“The level of awards being made in the Courts is at an all-time high. The average High Court award in 2014 was up 34 per cent on 2013 and the average Circuit Court award was up 14 per cent on 2013.
“In litigated cases, legal costs in Ireland account for more than 60 per cent of the compensation awarded.”
