| Drivers are facing a 25 per cent rise in insurance premiums in just two years.
The increases will see the cost of a typical premium soar by £100.
Admiral Insurance has revealed it put up motor premiums by 12 per cent last year and plans to repeat the increase in 2010.
This reflects official inflation data, which revealed that both car and home insurance have risen sharply in the past year.
Figures from the Office of National Statistics suggest all motor insurance premiums are up by an average of around 19 per cent in the past year alone
Admiral blamed the rise on higher pay-outs on personal injury claims, made easier by the explosion of ’no win, no fee’ compensation lawyers.
Bizarrely, it also claimed it had been forced to raise premiums to match increases by rivals. It argued that otherwise it would have been swamped by new business it could not cope with.
A typical driver with a new Ford Mondeo Estate and without any no claims bonus will pay around £470 for fully comprehensive policy without an excess.
That is up by by around £50 on a year ago and could rise by another £56 this year to £526.40.
That equates to an increase of £106 over two years.
However, for some groups, such as young men who have recently passed their test the increase could be up to £300  |
