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19/03/2007

Confused.com predicts an extra 10 percent in 2007

Online car insurance site Confused.com has warned UK drivers to expect a 10 percent rise in the price of their motor insurance over the course of 2007.

For the past few years, car insurance premiums have remained artificially low while the insurance companies are paying out more and more in compensation. At present, the average car insurance firm spends £109 in claims for every £100 charged to its customers.

"Such losses can only be sustained for so long," said Debra Williams, managing director of the online car insurance site. "We predict premiums will be forced to rise by a minimum 10 percent to meet the shortfall."

However, Williams does not expect every company to put its rates up in the coming year. "Not all insurers will necessarily increase prices," she said. "Some . will keep rates low in order to build volume."

 

 

 

 

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1.Non fault accident – where we have the name, car registration number and insurance details of the person who caused the accident, we will supply a replacement car on a credit hire basis. This means the charges for this service will be passed onto the insurance company of the person who was responsible for the accident. This service may not be available where we are unable to get an admission of liability from their insurance company, or wherethe driver is unknown or uninsured.

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