Higher car insurance prices to come warns Admiral

01 August 2008

Premiums will rise by “a few more percentage points”

The Admiral Group has warned motorists that they are facing higher car insurance premiums in the near future.

The group, which owns confused.com and insurance brands Elephant and Diamond, said it was expecting the price of premiums to increase by “a few more percentage points” over coming months.

David Stevens, chief operating officer of the Admiral Group, said: “Consumers can expect to see premiums rise slightly on top of the 2-3% increase seen in recent months.”

The Admiral Group’s premiums in the first half of 2008 have increased by 3% compared to the same time in 2007. However, the increases made by other insurers were around 5-6%.

Over the course of the past five to six years, motor insurance premiums have been virtually the same because insurers have been subsidising the cost themselves to try to keep prices down. Mr Stevens added that because cars are currently being used less as a result of the steep rises in petrol prices, the Admiral Group had benefited as a direct result because there have been fewer claims.

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