According to recent research, the premiums charged for car insurance policies are likely to climb by as much as 10 per cent in the next year.
The research was conducted by the comparison engine Confused. They estimate that the ten per cent increase will be just an average, with actual percentages far exceeding this for some policyholders.
The managing director of Confused, Debra Williams, reportedly commented that payouts on insurance are getting progressively larger, whilst premiums have not increased for some time. Therefore, the premium revenues are barely covering the cost of claims, meaning losses for many insurance companies .
Williams reportedly commented: “Such losses can only be sustained for so long and we predict premiums will be forced to rise by a minimum ten per cent to meet the shortfall.”