Car insurance unlikely to get cheaper, expert claims

Mon, 09 Feb 2009

The cost of car insurance is unlikely to come down in the near future due to a rise in claims, according to one expert.

Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association, explained that in 19 of the last 20 years car insurance firms have made a loss due to the cost of claims.

"Car insurance isn't making lots of money and it is extremely competitive so there is very little room to manoeuvre and bring rates down," he said.

An increase in the number of car insurance claims for personal injury has helped push up the cost of providing cover, Mr Trudgill added.

Last week, Mike Smith, commercial motor technical manger at Norwich Union, warned that the economic downturn might lead to an increase in car insurance fraud .

He also warned that criminal gangs could try and stage accidents in order to make a claim on someone else's car insurance.
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