Minister Troy welcomes recent downward trend in motor insurance premiums

Average compensation costs were 18% lower in 2025 compared to 2020.
21 Oct 2026
Sandyford

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  • Motor insurance premiums began to reduce slightly in the second half of 2025, according to the NCID.
  • The trend is consistent with the latest CSO figures, which show motor insurance premiums decreased by 5% in the 12 months to September 2026.
  • Average compensation costs were 18% lower in 2025 compared to 2020.
  • 88% of personal injury claims were settled under the Personal Injuries Guidelines, including 73% of litigated claims.
  • The Injuries Resolution Board continues to provide a faster, more cost-effective means of resolving personal injury claims.

Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy TD, has welcomed the publication of the latest National Claims Information Database (NCID) report.

The NCID report, published today, shows that motor insurance premiums began to reduce slightly in the second half of 2025. This is in line with the trend reflected in the latest Consumer Price Index figures from the Central Statistics Office (CSO), which show that motor insurance premiums decreased by 5% in the 12 months to September 2026.

The report also highlights the impact of the Personal Injuries Guidelines, introduced in April 2021, with 88% of personal injury claims settled under the Guidelines, including 73% of litigated claims, demonstrating their widespread adoption across all settlement channels. Average compensation costs were also 18% lower in 2025 compared to 2020.

The findings further highlight the important role of the Injuries Resolution Board, which continues to provide a faster and more cost-effective means of resolving personal injury claims. The Board achieves comparable awards for claimants in almost half the time taken through litigation, with significantly lower legal costs.

The Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy TD, said:

“The data published today is consistent with what we have been seeing in the Consumer Price Index figures from the CSO, which show that motor insurance premiums are moving in the right direction.

“When taken together with the latest CSO figures, this presents a positive picture for motorists and the direction in which premiums have been heading.

“Despite global inflationary pressures driving up the cost of vehicle repairs, alongside advancements in car technology, it is encouraging to see motor insurance premiums beginning to decrease.”

“While these figures are encouraging there can be no complacency. Insurance companies must ensure that these reforms are felt directly by their customers through lower premiums.”

Also published today, ‘Behind the Data: The Cost of Car Insurance in Ireland’ aims to enhance transparency around the factors influencing motor insurance costs. Drawing on data collected through the NCID, Central Statistics Office, Injuries Resolution Board and Road Safety Authority, the publication provides motorists with a clear and accessible explanation of the factors affecting motor insurance premiums and the impact of policy reforms on claims costs.

Minister of State Robert Troy added:

“I also welcome the publication of Behind the Data, which will provide greater transparency around the factors influencing motor insurance costs. This complements the forthcoming Motor Insurance Transparency Code, which will provide clearer information to approximately 2.2 million private motor insurance policyholders.

“Consumers deserve to understand why their premiums have changed and what they can do to secure better value. Currently, only around one in four motorists shop around for their insurance, despite 76% of those who do making a saving.

“Greater transparency, alongside increased consumer engagement, can help motorists make more informed decisions and secure better value for their insurance.”

The Government continues to advance the Action Plan for Insurance Reform 2025–2029, which contains 26 actions aimed at improving the affordability, competitiveness and availability of insurance.

Under the Action Plan, the Motor Insurance Transparency Code was developed by a working group comprising insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland. A number of participating firms have already begun introducing the new Premium Summary Statement and Market Overview Statement, with further firms expected to follow over the coming weeks and months

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