Motor Insurance Increases – The Reasons
A number of compounding factors have caused the need for motor insurance premium increases in recent times. Firstly, following the collapse of the ‘Celtic Tiger’ era in our economy and the global recession, some insurers foolishly chose to try and grow their market share with uneconomic pricing.
This action resulted in many of these companies losing money when the inevitable claims traffic occurred. The situation was further impacted by increased Court costs, fuelled by increases in the levels of awards permitted in the various jurisdictions and the accompanying Legal fees. In addition, the incidence of fraud escalated which is a natural fallout following an economic downturn and particularly where financial incentive exists again increasing overall costs. Further damage was caused by some distributors who, although seeing the problems emerging, continued to lure consumers towards cheaper and even more unprofitable offerings, some resulting in ultimate insolvency and closure leaving policyholders uninsured.
During this time we have managed to avoid this practice and continue to promote quality and value above dangerously uneconomic pricing. This prudent action has protected our customers well, resulting in the majority now only having to deal with relatively modest increases compared to many others. You can rely on our experts to guide you in making the correct decisions when it comes to your protection.