Motorists deserve fair play from insurance companies as claims fall – Nelson Murray

Motorists are justifiably peeved today with their high insurance costs as it’s emerged that motor claims have fallen by a massive 30% since 2019, a Fine Gael Senator has said.

Senator Linda Nelson Murray also pointed out that a recent Central Bank report showed that motor insurance premiums have increased by 9% in the first half of last year.

Senator Nelson Murray said: “Today we learned from the Injuries Resolution Board (formerly PIAB) that motor claims have dropped by 30% from 2019, despite a return to pre-pandemic traffic volumes.

“In fact, there has been a 41% reduction in awards values in the 6-year review period. This period included the time that the Personal Injuries Guidelines were introduced in 2021. So why have motorists not seen a decrease in their premiums?

“Today’s report today also shows that over €284 million was saved in avoided legal fees by claims being resolved through the Injuries Resolution Board process, rather than through litigation during this period.

“I have huge concern about a recommendation from the Judicial Council that personal injury awards should be increased by almost 17 per cent (16.7%) in the coming weeks. These increases will undoubtedly be ‘passed on’ by insurers, and the motorist ends up picking up the tab. If personal injury awards continue to be reviewed upwards every three years, not only will awards increase, but legal fees will increase also. Drivers simply can’t afford for this to happen.

“It’s also worth noting that there has been a significant reduction in claim volumes among younger age groups (under 44 years old) from 2019 to 2024, yet younger people are paying astronomical premiums, which can be prohibitive for younger motorists who need to use a car to get to work or college.

“In the Programme for Government, there is a commitment to driving down insurance costs. The Government is playing its part – but when are insurers going to play theirs?”