Industry sources reveal why motor insurance is soaring again [Video]

The cost of motor insurance is soaring again due to the rising cost of car repairs, industry sources claim.

Premiums are up by 11.4% on average in the year to December, new figures from the Central Statistics Office show, sometimes adding hundreds of euro to cover renewal costs.

A spokesman for Insurance Ireland, which represents the industry, said: “While motor insurance premiums had been declining for a number of years, we are starting to see the impact of significant inflation in the cost of repairs, increased volumes of damage claims, and the significant increase number of collisions on our roads.

“It is the case globally that the cost of insurance has been increasing, reflecting the impact of inflation; however, consumers in Ireland were cushioned from the full impact of inflation in the Irish insurance market because of the government’s insurance reform agenda, which is having a positive impact.”

Another industry source said: “The cost of repairs has …