Britons face hike in car insurance premiums

Wed, 10 Nov 2010

Britons could face double digit price hikes in car insurance premiums for the foreseeable future, it has been claimed.

This assertion comes after it was revealed that the average cost of comprehensive car insurance has soared by 40 per cent during the past 12 months.

Premiums are being driven up by a combination of increased fraud, higher personal injury costs, a rise in claims management companies and the cost to the industry of uninsured drivers .

According to Duncan Anderson, of EMB Consultancy, the recent steep increases had reflected a "catch up" in insurance premiums following higher claims costs.

"If claims continue to rise at the rate that they have been increasing, rates will continue to increase as well," Mr Anderson commented.

He added: "Overall there might be a 15 per cent to 20 per cent natural increase in claims costs if things continue as they are, which will be reflected in ever increasing premiums."
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