Profits for motor insurance companies rose by 26% last year to €418m, according to a new report by the Financial Regulator.
Figures show the cost of claims incurred for commercial and private motor insurance fell by 16% from €1.1bn in 2004 to €920m in 2005.
The study produced by the Irish Financial Services Regulatory Authority shows profits rose faster than charges to consumers fell.
Overall motor premiums fell from €1.6 billion in 2004 to €1.57 billon last year, a fall of only 1.8%.
The Irish Insurance Federation says costs to consumers have fallen by 45% over the past three years and that a recent survey showed consumers could save as much as €1,100 if they shopped around.
However, RTÉ News understands the number of motor insurance claims have risen by 10% to 185,000 last year, indicating that the trend in falling motor insurance premia may be at an end.
