AA says insurance premiums to rise by 30%

September 04, 2015
AA says insurance premiums to rise by 30%
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Motor insurance premiums are expected to jump by at least 30 per cent this year, according to AA Ireland, with prices already up by 20% so far.


As an insurance sales intermediary responsible for some 170,000 Irish motor policies, the organisation has a detailed understanding of price trends. “It’s the year from hell for insurance prices, and its getting worse,” says AA Director of Consumer Affairs, Conor Faughnan. “We understand some of the reasons but others are less clear.”

The AA says that rising prices cannot be solely attributed to more claims and that the industry is now having to compensate for reducing premiums too much in recent years. It has also called on insurance companies to provide more information on the cost of settling claims. Conor says, “We are being told that the industry is seriously worried about an increase in the typical injury award. However, it would help everyone to understand that if insurers produced data to prove it. We know of recent individual cases where awards appeared extremely high, but we need more than anecdotes and examples.”

Meanwhile, the ongoing problem of fraudulent claims has been adding between €50 and €60 to each individual policy, claims The AA. “One factor we are sure about is fraud,” says Conor. “A tougher stance on the part of the Government is necessary, as well as the enabling of better Gardaí detection resources. It is not fair to expect ordinary motorists to keep paying for the cost of chancers and fraudsters.”
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