Industry News from Yes Insurance

Car insurance premiums could rise considerably over the next twelve months, according to a new report.

Price comparison website Confused speculates that the average car insurance premium could rise around ten per cent in 2007.

Debra Williams, managing director of Confused, said the problem is that insurance payouts have increased markedly while premiums have remained fairly steady.

This means that on average, claims payouts have totalled £109 for every £100 generated in premium revenues.

Ms Williams told the Scotsman: "Such losses can only be sustained for so long and we predict premiums will be forced to rise by a minimum ten per cent to meet the shortfall."

In a similar piece of research released last month, finance website moneysupermarket.com released a report on the average car insurance rate across the UK.

The typical car insurance premium in 2006 was found to be £832.59, representing a year-on-year fall of over five from the 2005 figure.

However, a ten per cent increase would see the average car insurance premium rise to £915.85.

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