The cost of car insurance looks set to increase significantly if insurers follow the hike in premiums just announced by Norwich Union. The largest car insurer in the country has decided to bump up prices by an average of 16% and by as much as 40% in the case of higher risk drivers such as young men with little driving experience under their belts.
The reason is mainly because of an increase in personal injury claims – up by 10% in the last year. Car repair claims are also up by 6%. If other insurers are experiencing similar increases, it’s likely they follow Norwich Union’s lead and that is, of course, Norwich Union’s hope – otherwise they’ll find they’ve priced themselves out of the market!…
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