Key Findings:
- Average premium cost down 14% from the 2017 high
- Claims costs continue to rise, mainly due to higher damage and legal expenses
- Personal Injuries Guidelines have reduced average injury compensation, especially for minor claims, but rising legal costs offset these gains
- Average legal cost for litigated claims is now 27% higher than the 2015–2019 average
Insurance Ireland commented today (31st October 2025) on the publication of the Central Bank of Ireland’s seventh annual NCID Private Motor Insurance Report 2024. Insurance Ireland noted that while average premiums remain below previous highs, claims costs continue to increase – particularly in relation to vehicle damage and legal expenses.
The report shows that the average premium of €623 is still well below the 2017 peak of €738, reflecting the positive impact of the Government’s reform agenda. However, damage cost inflation and increased litigation are putting upward pressure on overall claims costs.
In 2024, claims cost per policy rose by 3%, the highest level since 2014, while damage costs increased by 18%. Although the average cost of smaller injury claims has declined due to the Personal Injuries Guidelines, this improvement has been offset by higher costs for larger claims and persistently high legal expenses.
Moyagh Murdock, CEO of Insurance Ireland, said: “The NCID data shows that while average injury compensation has decreased under the Personal Injuries Guidelines, the overall claims environment continues to be eroded by high legal costs and longer litigation timeframes. In 2024, legal costs for litigated claims were 27% higher than the 2015–2019 average, making up 48% of total costs for claims under €100,000. This offsets much of the benefit achieved through reform.”
Ms. Murdock added that while motor insurance premiums remain over €100 lower than their 2017 high, further progress depends on addressing the persistent rise in legal costs.
“The Government’s Action Plan for Insurance Reform includes Action 6, which targets these costs. Successive NCID reports clearly show that legal cost inflation remains a major driver of claims expenses. We urge the Government to accelerate Action 6 to preserve reform gains and support sustainable premium levels for consumers.”
The report also highlights the impact of litigation on settlement times. In 2024:
- 48% of injury claims settled directly with insurers, taking 1.8 years on average
- 36% settled through litigation, taking 5 years
- 16% settled through the Injuries Resolution Board (IRB), taking 2.7 years
Ms. Murdock concluded:
“Litigation adds significant cost and delay without improving outcomes for claimants. The Injuries Resolution Board plays a vital role in achieving faster, fairer settlements and helping to reduce unnecessary legal costs.”
Ends
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