2010 ushers in 15% hike in car premiums
by Gill Montia
Story link: 2010 ushers in 15% hike in car premiums
A 2009 rise of almost 20% in car insurance premiums could be followed by a further hike of 15% in 2010, according to Consumer Intelligence.
The market research firm puts the current average annual premium at £564.19, with 17 to 24-year-olds bearing the brunt of last year’s increase, at almost 25%.
For this age group a typical annual premium stands at £1,489 while for the 65s and over the rise has been around 15% to £423.
Best placed are 55 to 64-year-olds who pay around £376 a year to insure their vehicles.
Consumer Intelligence spokesman, Ian Hughes, believes upward pressure on pricing has “well and truly broken through”, despite the influence of price comparison websites.
He is concerned that the trend could encourage more motorists to drive uninsured and with an estimated 1.6 million uninsured drivers already on UK roads, the £30 per year penalty paid by legal car owners to compensate the victims of uninsured drivers may not be enough.
Earlier this month, Zurich announced that it will be increasing motor insurance premiums by up to one-fifth from March because of a rise in third party and personal injury claims.
The insurer said the current market is unsustainable.
In addition, EMB recently reported that motor insurer results for 2009 are even worse than feared.
Research by the actuarial firm revealed that combined loss ratios for the private and commercial motor insurance market are set to exceed 115%.