That's according to statistics from the Central Bank's fourth annual Private Motor Insurance Report.
As with last year's report, the data in this year's report is influenced by the Covid-19 pandemic and related government regulations.
According to the research, between 2020 and 2021, the average premium cost per policy fell by 2% to €607 on average. In Ireland, private auto insurance earned a total of €1.38 billion in premiums last year.
Last year, the number of claims grew by 11%. In 2019, meanwhile, this was still 15% below pre-Covid levels.
According to the data, during the fourth quarters of 2017 and 2021, auto insurance premiums decreased by 17%.
According to Insurance Ireland chief executive Moyagh Murdock, "the cost of insurance is a fundamental concern for customers, thus it is encouraging to see vehicle rates reducing for a fifth consecutive year."
"We have repeatedly demanded that the government enact policies that would lessen market volatility and provide predictability for policyholders. While customers are seeing higher expenses in many other sectors of the economy, the report's lowering premiums show unequivocally that the changes are beginning to take effect.
Settling claims
The study also includes details on the claims settlement process.
According to the new Personal Injuries Assessment Board (PIAB) regulations, 16% of claims were resolved last year.
The assessment service provided by PIAB offers all parties a less stressful and expensive alternative to litigation.
In April 2021, the Personal Injuries Guidelines were released.
The standards specify the maximum general damages that may be granted for various types of personal injury.
When making awards, the PIAB and the Courts must both take the guidelines into consideration. If the criteria are not used to make an award, they must state why.
20% of the claims that were resolved by the PIAB last year were resolved in accordance with the rules.
When examining claim costs between 2015 and 2021, 94% of claimants' total claim costs were less than €100,000.
When directly resolved, the average settlement was €13,933 and the typical legal fees were €1,568.
Where disputes were resolved through the PIAB, the average settlement was €21,856 and the average cost of litigation was €686.
When disputes were resolved by litigation, the average settlement was €24,174, while the average cost of the legal representation was €15,567.
Although the most recent PIAB data, which was released earlier this month, indicates a more encouraging trend in claimants accepting PIAB awards in 2022, the percentage of cases going through litigation is still far too high, according to Murdock.
“It is well publicised that the cost of legal fees feeds into the cost of insurance significantly, so this issue needs to be prioritised in order to swing the pendulum back in favour of consumers and the economy,” she added.
