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Irish Examiner
06-05-2025
- Automotive
- Irish Examiner
Car insurance premiums were up 9% during first half of 2024
The average motor insurance premium increased by 9% during the first half of 2024 compared to the previous year, with insurance companies seeing a significant increase in total premiums paid, a new report by the Central Bank of Ireland shows. During the first six months of 2024, there were more than 1.18 million policies written, with the gross cost of those premiums valued at €729m. During the same period in 2023, there were over 1.16 million policies written, with a combined gross value of €655m. Between January and June last year, the average written motor insurance premium cost €616 compared to the €567 recorded throughout 2023. Since the second half of 2022, the average written premium has increased by 12%. While the average premium increased during the first half of 2024, it is still below its peak during the period July to December in 2017. At that point, the average insurance premium cost €729. The majority, 93% of these policies were for fully comprehensive insurance, as third-party, fire, and theft policies continued to decrease. The data is derived from firms that make up 98% of the private motor insurance market in Ireland. Last October, the Central Bank reported that insurance companies saw profits increase by 8% to €105m in 2023. Following the introduction of a new detection system in 2024, the number of uninsured vehicles on Irish roads has almost halved — data published last week by the Motor Insurance Bureau of Ireland found. The MIBI said just over 4% of vehicles on the road were uninsured in 2024, compared to 8.3% of vehicles in 2022. The data comes from the Irish Motor Insurance Database, which collects information from insurers, brokers, fleet owners, and motor traders to compile details of policy holders, vehicle registration numbers, and the names of drivers permitted to drive that vehicle under the policy. This data is then shared with the Department of Transport and An Garda Síochána. Gardaí can check a vehicle's insurance status on the roadside and take action if a driver is uninsured. Last year, MIBI said there were 101,881 uninsured private vehicles against an overall total of 2.4 million. In 2022, this number was 187,803 against a total of 2.25 million. Last week, the Government launched the public consultation phase to support the Action Plan on Insurance Reform. The Government said the next phase of the plan would focus on measures to grow the insurance market to increase availability and improve affordability, strengthen consumer protections, and address transparency and affordability across all types of insurance. Read More Grocery price inflation rises to 4.9% following busy Easter period
RTÉ News
04-05-2025
- Automotive
- RTÉ News
What's being done to lower the cost of car insurance and is it working?
This week the Government launched the latest public consultation on insurance reform. It is part of a new action plan on insurance, aimed at encouraging more competition in the market and with the ultimate goal of bringing premium prices down. The previous government had a similar action plan that had some notable achievements such as the introduction of personal injuries guidelines, reforms of the Injuries Resolution Board, and passing legislation revising the duty of care owed by occupiers. While these measures were broadly welcomed, they did not make much of a dent in the cost of car insurance. And when we delve into the figures we can see why. Take the personal injuries guidelines for example. They were brought in for 2021 and set guideline levels for personal injury compensation awards that are used by both the courts and the Injuries Resolution Board to assess compensation levels for personal injury claims. According to the Central Bank's National Claims Information Database - a reliable independent guide on the cost of both motor premiums and claims - the guidelines have led to a reduction in the cost of injury claims. Between 2022 and 2023 (the most recent year for which we have accurate data), the number of personal injury claims was unchanged, however, the total value of such claims fell by €12 million (from €434 million to €422 million). Despite this the overall cost of claims over the same period rose (from €763 million in 2022 to €816 million in 2023). Why was this? A €65 million jump in damage claims. This meant that insurers' ultimate cost of claims per policy increased by 5% in 2023 to €369, which is a similar level to the years before the Covid pandemiand the highest figure since 2016. So while injury awards have reduced, damage claims have increased. Motor premiums paid by drivers are also on the way back up. The average policy cost in 2023 was €568 - 2% higher than the previous year. In relation to this, insurance companies will point to figures showing that the proportion of policies that include comprehensive cover, rather than third-party, has increased from 83% of policies in 2017 to 93% in 2023. In addition premiums fell by 23% between 2017 and 2022, but that was after a huge jump of 67% in the previous five years. Level of uninsured vehicles dropping Another strategy to tackle high policy costs has been to target uninsured drivers. The Motor Insurers' Bureau of Ireland (MIBI) estimates that claims involving uninsured drivers add up to €35 to the cost of every motor insurance policy. In 2022, MIBI figures indicated there were around 187,000 uninsured vehicles on Irish roads, which was four times higher than the EU average. But since the introduction last year of the Irish Motor Insurance Database, which helps gardaí to more easily detect uninsured drivers, that figure has fallen to around 100,000. However, Insurance Ireland - the group representing insurers - says it will likely take some time for this drop to work its way through the sector in relation to lowering premiums. The Alliance for Insurance Reform has welcomed all of the reforms and initiatives mentioned here but said that "it must be a source of growing frustration for politicians, as it is to policyholders, that the reforms to date have primarily benefited insurance company profit margins, rather than reducing the premiums people pay". Improving competition According to the Alliance, what will have the biggest impact in significantly driving down insurance costs for drivers is more competition - attracting new entrants into the market. That could be tricky in the short-term though; Ireland is a relatively small market with high costs. Also, the track record of big insurers entering the Irish market and competing on price has not been great. Quinn Insurance (2010) and Setanta Insurance (2014) both had high-profile collapses and these cases may make some wary of operating here. We have in and around 25 companies selling car insurance here. That might seem like a good number, but compare that with markets like France and Germany where there are three to four times as many providers for consumers to choose from. The average annual motor premium for the EU is €315 - Ireland's average is not far off double this figure. But the cost of claims here is a lot higher than the EU average, and it's unlikely we'll get down to that level any time soon. As part of its public consultation on insurance reform, the Government says it's keen to hear from consumers, representative groups, and those operating in the insurance sector. As mentioned earlier, those suggestions bore some fruit last time this was done. Proposed rise in personal injuries guidelines Though what might have a major effect on the cost of insurance before any more new initiatives are a factor is the Judicial Council's proposed 16.7% increase in the personal injuries guidelines. Insurance Ireland said this could "erode" the progress made by the Government's insurance reform agenda, and that it may prove counter-productive in terms of encouraging further competition in the Irish insurance market. The Oireachtas will ultimately decide whether this increase will be approved, and if it is then the inevitable rise in the cost of claims that follows will very likely be passed on - adding more pain to consumers in terms of higher insurance premiums.
Irish Times
28-04-2025
- Automotive
- Irish Times
Number of private motorists without insurance almost halves in two years
The number of private motorists driving without insurance has almost halved over the last two years, with much of the decline attributed to the new Irish Motor Insurance Database (IMID) system making it harder for people to evade detection. However, it is a different story when it comes to commercial vehicles, with more than one in six found to be in breach of motor insurance laws last year, according to research from the Motor Insurers' Bureau of Ireland (MIBI). It recorded 101,881 uninsured private vehicles within the overall 2.4 million private vehicles being driven on Irish roads in 2024. In 2022 the number of uninsured private vehicles stood at 187,803 within an overall private vehicle total of 2.25 million. The 2024 figure represents about 4.2 per cent of all private vehicles, which points to a fall of close to 50 per cent since the last time the MIBI carried out research in 2022. READ MORE Following the development of the IMID, the MIBI has been able to examine the number of uninsured non-private motor vehicles, broadly categorised as 'commercial vehicles', through the availability of enhanced insurance data. Within the commercial vehicles category, there are generally two different means by which insurance is provided: on an individualised basis with specific vehicles tied to each policy or on fleet or motor trade policies, which allow the cover to be transferred from one vehicle to another within a specific group of vehicles. Since November 2023, fleet and motor trade policy holders who do not provide the required information to the NFD are committing an offence and are liable to be prosecuted and subjected to fines of up to €500 per vehicle. The MIBI estimates about 425,000 fleet and motor trade vehicles should be listed on the National Fleet Database. So far, the details for 364,889 have been provided. The MIBI's analysis shows that within the combined commercial vehicles category, there are 710,708 vehicles on Irish roads and 108,671 of those vehicles are either uninsured or have not yet been added to the NFD. This means 15.3 per cent of commercial vehicles or more than one in six are breaking motor insurance laws. The chief executive of the MIBI, David Fitzgerald, said it was 'very encouraging to see the impact that the new detection system is already having on the number of private uninsured vehicles on our roads'. He said it is 'a powerful weapon in the battle against uninsured driving'. Following the introduction of this system, gardaí were able to seize 18,676 vehicles in 2024 and issue 26,094 summonses and charges. 'This system allows gardaí to see in seconds if a vehicle is uninsured or has not been added to the database, allowing them to act quickly in apprehending any offenders,' Mr Fitzgerald said. However, he said there is 'clearly additional work to do to combat illegal uninsured driving'.
BreakingNews.ie
28-04-2025
- Automotive
- BreakingNews.ie
Number of uninsured vehicles on roads drops after new detection system, analysis shows
The share of uninsured private vehicles on Irish roads has almost halved following the introduction of a new database system, analysis shows. According to research conducted by the Motor Insurers' Bureau of Ireland (MIBI), uninsured vehicles represented 4.2 per cent of the overall private fleet across the Republic last year, compared to 8.3 per cent in 2022. Advertisement In 2024 the MIBI found there were a total of 101,881 uninsured private vehicles within the overall total of 2.4 million. By comparison, in 2022 the number of uninsured private vehicles stood at 187,803 out of a total of 2.25 million. This also means the number of uninsured private vehicles dropped from one in every 12 in 2022, to one in every 25 last year. The Irish Motor Insurance Database (IMID) system is managed by MIBI to provide legal authorities with the insurance details for all vehicles on Irish roads. The MIBI is a not-for-profit organisation that was established to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles. David Fitzgerald, chief executive of the MIBI, said it was encouraging to see the impact the new detection system was having on the number of uninsured drivers. Advertisement "The number of uninsured private vehicles has practically halved, which is good news for all road users and anyone concerned about Irish road safety," Mr Fitzgerald said. "From early in its development, we believed IMID would represent a powerful weapon in the battle against uninsured driving and we can now see that theory being turned into reality. "Following the introduction of this system, last year Gardaí were able to seize 18,676 vehicles in 2024 and issue a further 26,094 summons and charges. This system allows Gardaí to see in seconds if a vehicle is uninsured or has not been added to the database, allowing them to act quickly in apprehending any offenders." The analysis also looked at the number of uninsured "commercial vehicles" through the availability of enhanced insurance data. Advertisement The details for these vehicles are legally required to be added to the national fleet database. The MIBI estimates around 425,000 fleet and motor trade vehicles should be listed on the database, but that so far details for just 364,889 have been provided. Ireland Driver number requirement for car insurance takes... Read More Mr Fitzgerald said there was still work to do to combat illegal uninsured driving. "This is particularly apparent in the data for commercial vehicles, where we see a higher proportion of vehicles that are either uninsured or not uploaded to the National Fleet Database by their fleet owners or motor traders. "The fleet data is now being used by Gardaí across the frontlines and given the high number of fleet or other commercial vehicles which are not fulfilling their legal motor insurance obligations we anticipate there is likely to be a significant number of offenders identified and apprehended. "Given these developments, we would encourage any fleet owners or motor traders who have yet to add all their vehicle details to the database to act now. Otherwise they can expect to have their vehicles stopped and potentially seized by the Gardaí in the months ahead."
The Journal
28-04-2025
- Automotive
- The Journal
Number of uninsured private vehicles on Irish roads halves amid new detection system
THE NUMBER OF uninsured private vehicles on Irish roads has almost halved following the introduction of the new Irish Motor Insurance Database, aimed at assisting gardaí in detecting uninsured drivers. According to research conducted by the Motor Insurers' Bureau of Ireland (MIBI), private uninsured vehicles represented 4.2% of the overall private fleet across the Republic of Ireland in 2024, an almost 50% reduction from when the same analysis was undertaken for 2022 and the percentage total stood at 8.3%. The MIBI was established to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles. They are responsible for the ongoing management of the new database, which was developed in conjunction with the Department of Transport, An Garda Síochána, Insurance Ireland and the wider insurance sector. In 2024 the MIBI found there were a total of 101,881 uninsured private vehicles within the overall total of 2.4 million. By comparison, in 2022 the number of uninsured private vehicles stood at 187,803 out of a total of 2.25 million. Advertisement That's a drop from 1 in every 12 in 2022, to 1 in every 25 last year. 'This system allows Gardaí to see in seconds if a vehicle is uninsured or has not been added to the database, allowing them to act quickly in apprehending any offenders,' said David Fitzgerald, CEO of the MIBI. He said the firgures are encouraging but that more work needs to be done to ensure more commercial vehicles are insured. 'This is particularly apparent in the data for commercial vehicles, where we see a higher proportion of vehicles that are either uninsured or not uploaded to the National Fleet Database by their fleet owners or motor traders. 'The fleet data is now being used by Gardaí across the frontlines and given the high number of fleet or other commercial vehicles which are not fulfilling their legal motor insurance obligations we anticipate there is likely to be a significant number of offenders identified and apprehended,' said Fitzgerald. 'Given these developments, we would encourage any fleet owners or motor traders who have yet to add all their vehicle details to the database to act now. Otherwise they can expect to have their vehicles stopped and potentially seized by the Gardaí in the months ahead.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
