Car insurance firm warns of rising premiums
05 March 2010 16:59:30
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| Car insurance premiums are likely to rise again this year. |
The company's chief executive told the Times that insurers need to increase premiums in order to make a profit, as typical claims sizes and cases of fraud are both on the rise.
"We put through premium hikes of about 12% over 2009, mostly in the second half," Henry Engelhardt told the newspaper.
"It is certain to carry on rising. I can't say exactly how much - it depends on how much pressure our competitors are under," he explained.
The insurer's chief operating officer, David Stevens, also spoke to the media about rising car insurance premiums, explaining that the company has witnessed a growing number of injury claims, which can make these accidents "very expensive".
Mr Stevens told the BBC that people are increasingly reporting injuries such as whiplash, which might previously have not been claimed for.
"More and more people are coming to expect to make a claim following an accident, where they maybe have a little bit of soreness in the neck and they're ... being told by advertisers and by lawyers that they should make the claim," he explained.
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