Profits from car insurance up 38%

Profits from car insurance policies have sky-rocketed 38 per cent in 2007 while the wider sector experienced a decline, it has been revealed.

The Irish Times reports that car insurance companies have recorded profits of 357.3 million euros (£290 million) in 2007, which is an increase from 258.7 million euros compared with 2006.

According to the Insurance Statistical Review, which is published by the Irish Financial Services Regulatory Authority, the cost of claims fell to 889.4 million euros from 1.037 billion euros between 2006 and 2007.

Furthermore, car cover accounted for 38.9 per cent of the Irish insurance market, which is a slight decline from 2006.

Insurance consumers have recently been advised by Insurancewide.com, which is a comparison website dating back to 1999, that the industry has been turned on its head by such websites, which allow customers to locate the best deals with the greatest ease.

It explained that this service is "by far the best option" for busy consumers of car insurance, adding that there is no "viable alternative".

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