Car insurance costs 'set to rise'
Some 91% of insurers believe motor insurance costs will increase in the coming months, with the upward trend set to continue into 2010.
Around nine out of 10 underwriters are expecting a rise for UK companies renewing their motor insurance policies in the third quarter, according to research carried out by Aon's Market Pulse.
This is in sharp contrast to the predictions for the second quarter, in which every underwriter predicted there would be no change in rates.
John Briggs, head of technical motor underwriting at Zurich, said: "The increasing cost of claims and the fall in investment return is increasing the upward pressure on motor fleet insurance premiums.
"As a result of these upward pressures premiums have been rising throughout the year and on average 'claims inflation plus' rate increases will be required going forward with the level of rate increase experienced by each fleet varying dependent upon that risks own experience."