It may already be costing you an arm and a leg to keep your car on the road, but prepare to offer up another limb: drivers will be asked to shell out another €130 for car insurance by next year.
A new report by Standard and Poor’s Global Ratings found that the average price of car insurance in Ireland currently stands at €900, after a year in which premiums have increased by an average of 28 per cent and as much as 50 per cent in some cases.
A further hike of between 10 and 15 per cent is expected in the coming months as insurance companies struggle with legal costs and personal injury claims.
Despite demonstrations outside Leinster House during the summer and a cross-departmental working group set up by the Government earlier this year in an effort to tackle the rising cost of premiums, they show no sign of stabilising in the immediate future.
While the situation is dire, there may be a shaft of light at the end of the tunnel. According to the S&P report, price hikes are expected to slow to ‘sustainable levels’ of approximately five per cent in the latter half of 2017.
The Competition and Consumer Protection Commission (CCPC) says it has been monitoring the motor insurance industry:
“…we know from our contacts with consumers that the sharp rise in motor insurance premiums has had a significant impact on them.” a statement read.
“We continue to closely monitor developments and will, if necessary, take action to stop specific anti-competitive practices in the motor insurance sector.”
If you believe you have evidence of a breach of competition law in the motor insurance sector contact the CCPC.
