Car insurance premiums set to rise

Sam Jackson

June 22, 2011

November 13, 2018

Car insurance premiums set to rise

UK motor insurance premiums are set to continue the upward trend this year after the industry suffered an over £2 billion loss in 2010, according to a new report by accountancy firm Deloitte.

The losses were triggered by an increase in no win-no fee personal injury claims, with estimates that insurers paid out 120p for every 100p worth of insurance premiums they collected in 2010.

There was a 10% rise in car insurance premiums last year, Deloitte said.

Soaring fuel costs have already become a cause of concern for motorists in the UK.

According to the AA, there could be a 30% rise in premiums on new car policies, though the average may be lower as motorists with good records are offered cheaper deals to encourage them to renew.

Sam Jackson

Money Dashboard

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