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Wednesday, January 20, 1999 Published at 20:07 GMT

Car insurance set to soar


Car insurance set to soar
Car insurance premiums could rise by nearly a third this year, according to a new survey.

The research, by insurance brokers Footman James and Company, predicts that most motor insurance policies will rise by at least 10-15% over the year.

But the report warns that some insurers will be looking to hike up their premiums by as much as 30%.

Peter James, managing director of Footman James, said: "Rates for motor insurance are now hardening and insurers are looking to increase annual premiums by as much as 30% over the next 12 months."

Guardian Insurance confirmed that premiums were set to rise this year. David Ross, a spokesman for the company, said that on average customers could expect to see a 10% rise in prices.

He added: "Some customers may see even higher rises, it all depends on where they live, what type of car they drive and what it is used for.

"Some motorists will be facing rises of around 30%."

But Footman James urged customers to shop around for a good deal if their insurer was upping prices.

How to cut the cost

Direct Line, which deals directly with customers, said that it would not be raising prices by this amount.

Adrian Webb, a spokesman for the company, said: "Premiums have gone up marginally over the last year, but there will be no sudden rise for customers.

"Many insurers have struggled to make money out of car insurance over the past four years, because the market has been so competitive. As a result many are being forced to increase prices."

Customers can cut the cost of their car insurance by reducing the number of drivers covered, fitting security devices and selecting an "limited mileage" option on their insurance policy.


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