We all grumble about the high cost of car insurance in Ireland, and it's something that has often held back the market for more interesting cars in this country, as buyers have been herded into cheaper, lower-power models for the sake of their premiums. The advent of multi-national insurance companies in the 1990s, and in spite of the fact that the Personal Injuries Assessment Board (PIAB) has been in place since 2004, the fact is that insurance payouts for injury claims are still sky-high in Ireland compared to our nearest neighbour.
How much higher are Irish motor injury claims than in the UK?
Well, according to data from the Society of Actuaries in Ireland (SAI), the problem is that even though 2021 saw the introduction of Personal Injuries Guidelines, the average cost of Third‑Party Injury (TPI) motor claims in Ireland is still more than 50 per cent higher than the corresponding level in the UK. In 2024, the TPI claims cost per policy was €205 in Ireland, compared with €135 in the UK.
Why are Irish motor injury claims more expensive than in the UK?
Partially, it's down to differing regulations between Ireland and the UK. According to the chair of the Society of Actuaries' Working Group, Noel Garvey, "Whiplash Injury Regulations introduced in England and Wales in 2021 have significantly reduced award levels for whiplash injuries, including associated minor psychological injuries, compared to Ireland's Personal Injury Guidelines. Their introduction has also coincided with a marked decline in motor injury claim frequency in the UK.”
Is that the only reason pushing up Irish car insurance costs?
No, Garvey also said that: "The Society of Actuaries' working group is very cognisant that while award levels are a significant component of claims costs, they are not the sole determinant of insurance premiums. Claims frequency, legal costs, fraud controls and market competition also materially influence pricing outcomes.”
In fact, legal fees are 2.8 times more expensive in Ireland compared to the UK. Garvey said: "While the overall difference has narrowed from 3.0 times in 2018, the relative difference in legal fees is increasing, from 2.5 times in 2018 to 2.8 times in 2024. This highlights that legal costs remain one of the key drivers of the higher third-party injury claims cost per policy in Ireland.”
The Society found that in 2024, the average settlement cost per TPI claim (at claimant level) for claims lower than €100k in Ireland was €23.2k. By comparison, the average settlement cost per TPI claim that settled for less than €311k in the UK was €9.6k.
Garvey said that: "The role of the Society of Actuaries is not to advocate for a particular compensation level. Rather, it is to provide evidence on comparative approaches and to clarify the consequences of different policy choices. Ultimately, the determination of appropriate award levels is a societal decision that requires balancing fairness to injured individuals with affordability and sustainability for policyholders. We are keen to explore where we can add further insight and value to this discussion in the future by engaging with stakeholders in Ireland and abroad to better understand the personal injury claim landscape.”