Declining car insurance premiums days are numbered.

13 August 2014

car in flood Admiral have told investors that things are looking up for them, which means predictably lousy news for motorists.

They've said that the recent fall in premiums may be ending, even though regulatory efforts have been trying to bring them down even further.

Admiral's chief executive, Henry Engelhardt, said: "In the UK there are some signs that premiums are no longer falling but we have yet to see firm evidence of an inflection point and a return to premium growth."

"Admiral’s premium rates have been pretty flat over the first half of the year, though as a result of the reductions in 2013, total premiums are down around 9% compared with the first half of 2013."

You see, insuring your car has been a little cheaper since the Government and industry got together and started to come down hard on fraudulent claims (we're looking at you Mr I Got Whiplash After Someone Took My Wing Mirror Off And I Gasped A Bit Harder Than Usual). With a decline in claims , premiums went down with them.

The Competition and Markets Authority (CMA) proposed imposing a cap on replacement vehicle costs too, which would be passed on to the at-fault driver following an accident, as well as wanted to ban price parity agreements between price comparison websites and insurers.

However, it looks like Admiral & Co have found a way of milking more money out of drivers.

TOPICS:   Motoring   Insurance

What do you think?

Your comment