Insurance costs, particularly motor insurance, continue to rise sharply in Ireland, with premiums increasing at a rate of nearly 11%—much higher than the general inflation rate.
Despite significant reforms in the insurance industry, such as lower personal injury payouts and fewer fraud claims, the cost of insurance is driven up by the expensive repairs for electric vehicles, which have seen a 40% surge in damage claims.
That’s according to Personal Finance Editor with the Irish Independent Charlie Weston.
Speaking on Morning Mix Mr. Weston said that in addition to rising motor insurance costs, general inflation remains a concern, with everyday expenses like groceries and energy still about 25% higher than two years ago.
Energy prices are particularly troubling, as small reductions from some suppliers haven’t eased the burden on households.
Looking ahead, the return of Donald Trump to power could impact inflation further through trade tariffs, though any action could also prompt the European Central Bank to cut interest rates.
Ultimately, while reforms have had some positive effect, rising repair costs, especially for electric cars, are continuing to drive up premiums and keep overall insurance prices high.
