UK Car Insurance - Premiums May Continue to Soar

12/11/2010

UK car insurance costs are set to increase for the forseeable future according to an industry specialist who spoked to MPs recently.

There has been a staggering rise of 40% in comprehensive UK car insurance premiums in the last 12 months alone, and motorists are likely to face further double-digit increases.

Insurers admit that they are being forced to increase their quotes in order for them to make a profit - by not covering the rising cost of personal injury claims, dealing with uninsured drivers and increased vehicle fraud.

EMB Consultancy's Duncan Anderson admitted to MPs that the rises have been a result of a "catch up" in premiums.

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

"Bodily injury claims are increasing at a rate of 30% and other claims types are increasing by 5% per annum.

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