Recent raids on insurance company offices by European Union officials have been credited with causing a sharp decline in the cost of motor insurance premiums.

The latest figures from the Central Statistics Office released for August show a 14% drop in the cost of cover and come just a month since European Commission competition enforcers carried out dawn raids on insurers, brokers and Insurance Ireland. The raids came on the back of suggestions that a cartel was operating within the insurance industry.

Although this is welcome news for motorists, many observers still believe that Irish drivers are paying vastly inflated premiums, which have gone up on average by 70% in the last 3 years. Speaking about the reductions Conor Faughnan of AA ireland said, "The battle is not won yet. Motorists are still paying too much for insurance. We need to push through reforms that the AAI and others have identified."