Despite government reforms in the industry, motor insurance premiums are now rising at 15 times the general rate of inflation.
Figures from the Central Statistics Office show that overall prices rose by 0.7pc last month when compared with the same month last year.
However, the cost of motor insurance was up by 10.4pc in the year to September, which is around 15 times higher than the general rate of inflation.
This is the first time in more than a year that the rate of increase in motor premiums was in double digits, and it is the 13th month in a row of premium rises.
The Alliance for Insurance Reform, a campaign group, said the premium hikes were happening at a time when insurers are making bigger profits than ever.
“The CSO figures show in stark terms the ever-increasing cost of motor insurance,” chief executive Brian Hanley said.
“While it is true that inflation in the cost of labour and parts contributes to this, this is not the entire picture.”
He said injury awards are coming down since the introduction of the Personal Injury Guidelines, and this forms almost half the overall cost of claims.
“These increases are also occurring at a time of record profits for many insurers,” said Mr Hanley.
Health insurance costs were up 12pc in the year to September after multiple hikes by VHI, Laya and Irish Life Health.
Today’s News in 90 Seconds – October 11th
The CSO figures show that home insurance rates were up 7pc in the year.
Motor insurance premiums have been rising for more than a year.
Insurers say motorists are making more claims, and that it costs more to repair cars damaged in accidents.
However, the rise in the cost of insurance is happening despite the Government introducing a large number of reforms in an attempt to bring down the cost of insurance for motorists, homeowners, businesses and charities.
These include legislating to change the guidelines on payouts for minor injuries after the state’s judges agreed to lower recommended award levels.
The state’s Injuries Resolution Board has also been reformed.
It is cheaper for insurers and consumers to use because legal costs are a fraction of those for cases that are litigated.
There has been a dedicated garda insurance fraud unit set up, with changes to duty-of-care legislation, making it harder for those exaggerating compensation claims to get a payout.
Asked if insurers were profiteering, industry group Insurance Ireland said the figures published by the Central Bank in July were proof that insurers have followed through on their commitment to pass on the benefits of Personal Injuries Guidelines to consumers.
It said that the average written premium was up by 0.5pc to €561 in the first half of last year.
Irish motor insurance customers benefited by significant decreases from 2017 to 2023, it said.
“While recent figures show that premiums for motor insurance are increasing due to inflationary pressures, it is important to point to those steep decreases in recent years that flowed from the implementation of the actions under the agenda for insurance reform,” Insurance Ireland said.
Overall price rises in the economy have slowed down, but the cost of goods and services is still going up, new figures show.
Lower energy costs was the main reason for the sharp fall in inflation.
Gas prices fell by 19pc over the past year, home-heating oil dropped by 17pc and solid fuels were down 8pc.
The overall rise in the consumer price index, which is the official measure of the rate of inflation, was down from what was recorded in August, when the annual increase was 1.7pc.
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