Predicted motor insurance premium hike 'to reflect true cost of cover'

Posted :31-08-2007

The predicted rise of ten per cent in motor insurance premiums will result in a more accurate representation of motor cover costs, onlyinsurance.com suggests.

According to Insurance Times, the rise - attributed to the number of claims due to the recent extreme weather in the UK and increased premiums in the wider insurance market - will lead to intensified competition in the broker and aggregation sector.

Ian Hall of onlyinsurance.com told the publication: "With swelling premium costs, many brokers and aggregators will no longer be able to offer low-cost products, which often involve poor deals with high excesses and limited cover."

Mr Hall added that a truer representation of vehicle premiums will provide a fairer insurance deal to consumers.

The British Insurance Brokers' Association recently stated that electronic motor insurance certificates would offer a faster and more environmentally-friendly way to provide consumers with their motor insurance documentation.


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