Of all the bills that we have to pay, motor insurance must rank as one of the least popular. A legal necessity, it is something that few people will ever feel that they are getting any value from, and to add to the problem, its fluctuating price can leave people feeling that they have little or no control over the cost.

But the good news is that, despite the relative unpleasantness of having to pay for it, the cost of motor insurance has actually been coming down in recent years.

"If you adjust CSO statistics for inflation, premium costs are back at about 1999 levels, " said Carmel Mulroy, public affairs manager at the Irish Insurance Federation.

"This research is supported by a survey produced by the Irish Brokers Association, which reached similar conclusions. And the good news is that these costs are continuing to fall."

However, the good times may not last. The main factors which impinge on the costs of motor insurance are the number and the size of claims, and looking ahead, the upward trend in road fatalities will obviously impact on the cost of cover into the future. The trouble is that the only concrete way of ensuring that this trend does not continue would be to reduce the number of serious accidents on our roads.

"We have been consistently calling for greater levels of enforcement of our road safety laws, " said Mulroy.

"The additional penalty points which were just announced may be a welcome development, but the proof will be in the enforcement, without which the whole system is toothless."

Still, even with the increase in the frequency and severity of accidents, premiums continue to fall. So if there is a sudden turnaround in the levels of serious injuries and fatalities on our roads, will the current regime of falling costs continue?

"Insurance is very cheap at the moment, " said Paul Moloney, head of corporate affairs at Axa. "But premiums reflect directly on the cost of claims, so if something happens to claims, then something will happen to premiums.

"The trouble is that there is usually a lag of between two and seven years between what is happening now and what will happen to premiums in the future . . . so whether the insurance companies are making profits or losses will not necessarily be reflected in what is going on at the same time for the customers.

"Companies were making huge losses between 1999 and 2003, which is why there was a dramatic increase in premiums, but we are now starting to see these premiums come down because until a year ago the cost and frequency of accidents had levelled off."

That statistic has, of course, changed over the past year, which is why premiums could well go up into the future. The litigious nature of the Irish as a nation has not helped matters, nor has our rather cavalier attitude to road safety. But it has been estimated that 40% of the cost of processing a claim in Ireland goes on legal fees, which is why the establishment of the Personal Injuries Assessment Board (PIAB) could go some way to reducing the overall costs of insurance.

"The PIAB is making a difference, " said Moloney.

"But because of the time lag, it is possible that its full impact will not be felt for a few years."

This view is echoed by Carmel Mulroy, who feels that the PIAB is a positive step for the insurance industry in Ireland overall.

"The PIAB will not reduce the cost of compensation, although it will cut the associated costs of settling a claim, " she said. "Because of this, many of our members will have lowered their prices in anticipation of what will happen. But overall, we will support any measure that helps to reduce the costs of claims."

Nevertheless, much of the responsibility regarding the lowering of insurance costs lies with the individual drivers on the roads.

Firstly, people should pass their driving tests, because there is a loading of up to about 30% on the cost of cover for people driving on a provisional licence.

"We know that provisional licence holders are twice as likely to have an accident, " said Paul Moloney of Axa.

"We would like to see a situation where people on provisional licences are not allowed to drive on the roads, such as what exists in other countries. But it is a societal thing . . . we need a proper system, proper training and a reasonable waiting list for the driving test."

Other methods for reducing the costs of premiums include shopping around (an IFSRA survey unearthed some spectacular differences between the costs of cover offered by some companies), driving cars with smaller engines, and even accepting higher excesses in return for lower premiums and protecting your no claims bonuses with Step Back Protection.

People can also choose specific plans from insurance companies which can help to reduce the cost of a premium, although these are mainly aimed at inexperienced drivers.

For example, Axa has "Tracksure", which installs a device in a car to monitor speeds (thereby leading to a reduction in the premium for young drivers), while Hibernian has schemes called "Ignition" and 'Provisional Ignition".

These allow inexperienced drivers to get a minimum motor insurance discount of 20% (up to a maximum of 40% for exceptional driving skill) by successfully completing a one-day drivertraining course. Candidates can also opt for an additional 10% discount for voluntarily refraining from driving between the hours of 11.00 pm and 6.00 am.

This scheme was expanded to allow provisional drivers to avail of the discount. To date, more than 45,000 inexperienced drivers have successfully completed Ignition, and over 90% of these have gone on to take out insurance with Hibernian.