Despite
the fact that fuel prices are decreasing, car insurance prices are increasing
in Ireland. Irish drivers can see that the prices on car insurance services
have increased by about 16% from April 2014 to April 2015. According to experts,
car insurance prices are expected to go up even higher by the end of the year.
The increase in car insurance prices on the Irish market can be easily
explained. Local car insurance companies have been competing with each other
for a long period of time, thereby lowering their premiums to gain more market.
Unfortunately, by doing so, many car insurance service providers suffered huge
losses. To make up, many are increasing their premiums in an effort to raise
their profits. That’s why car insurance prices have begun to grow.
Motor insurance premiums in Ireland have already risen from €500 in 2014 to
€580 this year. Moreover, the leading providers of car insurance in Ireland
have warned the local drivers that prices on their services may increase by as
much as 20% by the end of 2015.
Nevertheless, some Irish car insurers explain the growth of their service
prices by the fact that the road traffic has increased significantly. This
means that car insurers will have to deal with more collisions in the future.
As a result, their costs have to match this forecasted increase.
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