Personal Finance

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

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