Car owners across Leitrim say they are reeling from soaring motor insurance premiums, as new data highlight sharper increases than many expected. Figures from the Central Statistics Office (CSO) show an 11.4% nationwide jump in car insurance costs, yet Leitrim’s rural location seems to magnify the problem. Limited repair facilities and fewer insurer choices often lead to steeper renewal quotes, according to local drivers.

“Components are more expensive, and skilled labour is in short supply,” one local insurance agent said. “It all feeds into the premium calculations.”

Insurers largely attribute the spike to climbing repair costs, driven by increasingly sophisticated car technology. Electric vehicles, becoming more common across Ireland, require specialized parts and trained mechanics—resources that can be harder to find in smaller communities like Leitrim. Inflation adds another layer of pressure, pushing up labor expenses and spare-part prices.

“These increases are influenced by many factors,” said a spokesperson for Insurance Ireland. “Although we witnessed a period of falling motor premiums for several years, surging repair costs, a higher volume of damage-related claims, and an uptick in road collisions have started pushing rates upward.”

Recent figures from the Road Safety Authority (RSA) show that collisions causing material damage have surged from roughly 27,000 to nearly 49,000 in the past decade. Industry observers say more than 2.8 million cars are now on Irish roads, likely contributing to the rise in insurance claims.

Brian Hanley of the Alliance for Insurance Reform (AIF) underlined the impact of inflation, remarking, “We’re seeing sustained hikes now that inflation has taken its toll on parts and labour. While general inflation appears to be easing, there’s hope this trend might lead to a more stable insurance market in the near future.”

Home insurance premiums have also climbed, with an 8.3% rise recorded in the past year. Construction-related inflation, higher property values, and broader market pressures are all cited as reasons for the upswing—affecting many Leitrim homeowners.

Trade Minister Dara Calleary, closely involved in the Government’s insurance reforms, voiced frustration at the escalating costs: “It’s disappointing to see these rates go up again, especially given the level of reforms we’ve put in place. We’re monitoring the situation closely.”

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