Recent studies have shows that the costs have already risen by almost 40% from 2015
Car insurance prices are set to go up by another 20%.
An Oireachtas Committee examining the rising costs of motor insurance yesterday heard that some premiums have more than doubled in recent years.
The AA says they expect further increases over the next two to three quarters unless action is taken.
Among those worst hit by the price hikes are older people - Justin Moran of Age Action Ireland says it's unfair to single them out as dangerous: "The reality is that research shows the exact opposite of that, that older drivers tend to drive more slowly, they're less likely to drink and drive, less likely to speed, less likely to take drugs."
"In Ireland, 22% of driving licence holders are over the age of 60, yet they get less than 10% of the total number of penalty points."
Back in August of this year, the Central Statistics Office said rising motor, health and home insurance costs have all contributed to a half-percent increase in inflation since July 2015, and in the previous twelve months, car premiums had gone up by 38.6%.