Car insurance giant Admiral has announced that
car insurance premiums are expected to rise further this year, after increasing by 12 per cent over the past 12 months.
The brand saw its profits increase by 7 per cent over the year but insists it will increase premiums again this year to “compensation for claims inflation.”
"Prices have been going up across the market because of personal injury claims and comparison sites encouraging people to look for cheaper insurance. We think this trend will continue throughout 2010,” stated Henry Engelhardt, the head of Admiral, which also runs the Elephant and Confused.com brands.
The AA British Insurance Premium Index said that premiums rose by 7 per cent in the final quarter of 2009 alone. Other brands, Churchill, Green Flag and Direct Line, all operated by Royal Bank of Scotland, reported losses of £170 million for the year. It attributed the losses to poor weather and an increase in claims for bodily injury.
The Association of British Insurers’ spokesman, Malcolm Tarling, called for a reduction in the cost of settling claims. He explained, “[the costs involved with settling claims] currently add an extra 10 per cent to motor premiums. These, together the costs of uninsured driving and insurance fraud, continue to put an upward pressure on motor premiums."
