UK Car Insurance to Be Hit By Rising
Costs
18th December 2006
According to This Is Money, motorists could be hit by increasing
costs as one of the UK's biggest car insurer looks set to raise
its premiums by 20% in 2007.
Insurance giant Royal Bank of Scotland Insurance, which owns brands such as Direct
Line, Churchill and Privilege, has admitted that it is starting to increase premiums,
following an earlier move by Norwich Union, which increased rates by 40%.
The increases are claimed to be in response to the growing costs of personal
injury claims, taking into account associated medical bills, compensation and
legal fees. In addition, the insurance industry is also suffering from the rising
problem of accidents caused by drivers without insurance.
Cited in This Is Money, Henry Stevens, director of underwriting at the Admiral
Group, said: "We believe Royal Bank of Scotland Insurance is the decisive
factor in taking the market up in price. If it were to sustain a series of increases
over the next 12 to 18 months, that would take rates up substantially."
Royal Bank of Scotland Insurance's
motor policy premiums have already
increased by 5% across all key brands since September 2006. If the
growing trend was to continue, 2007 would see a 20% increase.
Industry experts believe that such rises are on the horizon, with
the average premium on a comprehensive policy expected to be pushed
up by GBP152 to GBP762 in 2007.
References :http://www.insurance-business-review.com |
