Legal Costs Blamed For Latest Rise In Motor Insurance Costs

Motorists are facing another increase in insurance costs, with the Central Bank reporting an average rise of 4% in motor premiums. But new research has highlighted a particularly striking issue: in some litigated motor injury claims, legal costs are now higher than the compensation paid to the injured person. Despite reforms designed to reduce personal injury awards and encourage settlements outside court, legal costs for litigated claims have risen significantly. Insurers warn that this could put renewed pressure on premiums. So, why are the reforms not delivering more noticeable savings for motorists, and what needs to change? Alan Morrissey was joined by Fine Gael TD for Clare Joe Cooney. Photo (c) Dacharlie from Getty Images via Canva