Women's car insurance news
19/09/2007
Cost of cheap car insurance on the up
It has been predicted that the cost of cheap car insurance in the UK will rise by 10% in 2008.
Research by EMB, a major actuary company, has revealed that it expects UK car insurance companies to put up the cost of their premiums by an average of 10%.
Although motorists will not appreciate the loss of their cheap car insurance quotes, EMB says that the rise is necessary as currently motor insurers are paying out in claims more than they are taking in premiums.
For example, EMB revealed that car insurance companies are paying £111 in claims and expenses for every £100 of car insurance premiums; a situation which clearly cannot go on forever.
A spokesperson for EMB said: "Our analysis shows that insurers have been able to subsidise motor premiums because of reserve releases due to better than expected levels of personal injury claims in the past few years, but this won't go on forever.
"If they hadn't had these reserves to release, the results would have been totally unacceptable."
