Esure to drive up car insurance prices
Esure, out of the goodness of their own black hearts, have warned that they're going to whack the prices of car insurance premiums this year, which means all the other insurance companies will be following suit, no doubt.
The reason Esure are doing this, is because their half-year profits have taken a hit, thanks to an increase in personal injury claims. The profits have had a fall of 80.7% between January and June, compared to the same period 12 months ago.
Stuart Vann, the CEO of Esure, said: "The claims environment for the motor market continues to deteriorate and as a consequence we will seek to implement further rate increases in the second half of the year."
Esure, the group who also own Sheila's Wheels, saw their profit before tax increasing by 84.6% to £105.4m, so they're obviously bordering on destitute. They also just bought up the 50% stake of GoCompare they didn't already own.
This follows an AA report about the rise and inflation of claims, where drivers are making more claims and want bigger pay outs for them. The AA's British Insurance Premium Index reckoned that the cost of a comprehensive motor insurance policy has risen by 5.5% in the space of 12 months.
The days of falling prices in motor insurance are over.