The average price paid for motor insurance shot up by 62% between 2013 and 2018.

The Central Bank’s first-ever Private Motor Insurance Report also shows legal costs for most cases settled in court make up nearly two-thirds of the total compensation awarded.

The average premium in 2009 was €498. By 2013 it was €435.

But by last year premiums had increased by 62% to €706.

While the number of claims are down, the cost per claim is up 64%, meaning drivers paying much higher premiums.

Claims settled through the Personal Injuries Assessment Board had an average compensation of around €22,000 and legal fees of just €753.

While the majority of claims settled through litigation had similar compensation levels, legal fees were over €14,000.

The Central Bank says the more cases settled through PIAB, the greater the potential for lower premiums.

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