LIMERICK Sinn Féin senator Joanne Collins said the continued rise in car insurance premiums is yet another blow to rural communities, warning that motorists are being hit from all sides while insurers continue to benefit.
Speaking following the latest data from the Central Bank on motor insurance costs, Senator Collins said: “Rural Ireland is being hit yet again. For many people in counties like Limerick, having a car is not a luxury, it is a necessity. Yet we are seeing insurance premiums rise for the fourth year in a row, despite clear evidence that key costs for insurers are falling.”
“The average premium is now €655, up again on last year, while the average cost of claims per policy has dropped to around €310. People are right to ask: where is the justification for this increase?”
The County Limerick politician pointed out that families in rural Ireland are already dealing with rising fuel costs, higher grocery bills, and increased energy prices.
“Now they are being asked to pay more for insurance at a time when insurers’ underlying costs are not rising at the same pace.
“This is not just about numbers – this is about fairness. People who have no alternative but to drive to work, bring their children to school, or access basic services are being squeezed,” she said.
Senator Collins said the situation is particularly unfair for rural drivers who often have no access to public transport.
“In cities, people may have options. In rural Ireland, they do not. That makes these increases even more unjust. It is effectively a penalty on rural living.
“While we know repair costs have increased, we also know that injury claim costs have fallen significantly due to reforms. Those savings must be reflected in premiums, and right now they clearly are not.
“The Government cannot continue to stand back while insurance companies increase prices year after year. Voluntary measures and weak transparency codes are simply not good enough.”
Senator Collins called for stronger action to protect consumers, saying: “We need binding rules that force insurers to show exactly how savings are being passed on to customers. Without that transparency, people will continue to feel – rightly – that they are being overcharged.”
“This is another hit for rural Ireland, and it is one the Government has the power to address. It is time they stood up for ordinary motorists.”
Urgent action, she believes, is needed to bring costs down and hold the insurance industry to account.
“Sinn Féin has brought forward legislation that would force insurance companies to show exactly how savings are being passed on to customers and prevent profiteering. That kind of action is badly needed,” she said.