Motor insurance premiums are rising at 15 times the rate of general inflation.

New Central Statistics Office figures show that insurance costs have been rising for drivers for the past 14 months in a row.

The Irish inflation rate is 0.7%, while the inflation rate for car premiums is 10.9%.

On The Pat Kenny Show this morning, Irish Independent Personal Finance Editor Charlie Weston said the rise in premiums comes despite several "radical" motor insurance reforms.

He said the introduction of new judicial guidelines in 2021 have seen personal injury payouts falling.

Meanwhile, the new Injuries Resolution Board also cut legal costs by around €75 million last year.

A new dedicated Garda Insurance Fraud unit has been set up to investigate fraudulent claims.

"There's been unbelievable reforms on the insurance side and yet premiums are up," Mr Weston said.

Damage claims

Mr Weston said insurers are blaming a "surge in damage claims" for the rise in prices.

"The cost of repairing is extremely high, particularly if it's an electric vehicle," he said. "There's been nearly an increase of 40% in settled damage claims, up to about €7 million."

Rising costs for small repairs may also be causing insurance premiums to increase.

"If someone has a small accident, they may go to the dealer or the garage to see what it costs to repair, and it turns out it's so much that they might not be able to afford it," Mr Weston said.

He said these smaller claims "add up" and result in higher premiums.

Health insurance

Meanwhile, health insurance premiums are increasing at rate of 10%, according to the CSO, although Mr Weston said costs could be higher depending on the insurer.

"When multiple people go to renew between now and January, they'll see their premiums may have gone up by as much as 25%," he said.

However, a new insurer set to launch on the Irish market in the next number of days may bring the premiums down.

Level Health, which is backed by Aviva, offers four plans.

"They're going to be very competitive and hopefully that will force a reaction from the likes of VHI, Laya and Irish Life, and they’ll either discount their plans or bring out newer, cheaper plans," Mr Weston said.

He said he hopes the arrival of Level Health could be "good news" for insurance customers.