Premium rise would only be minimal
Tuesday 25th July 2006, 12:00AM BST.
CAR insurance premiums will not rise unduly if the States backs a move to charge for treating vehicle accident victims, according to a leading company. Insurance Corporation technical and claims manager Vincent Bray said that while the proposed scheme would have some impact on insurers’ claims costs, the overall amount would not represent more than 2.5%.
On an insurance policy of £350 to £400, he said, that would not amount to more than £10.
His comments follow concerns by some brokers in the July Billet that premiums would rise.
‘We’re not saying they’re wrong, we just don’t think that the amount involved compared to all the other rising costs – such as repair costs, legal fees and court awards – is something to scream about,’ he said.
‘We understand why the proposals are being put forward and would also say that as insurers it is something that we will take in our stride.’
Mr Bray added that if the proposals were accepted by the States at their meeting later this week then policyholders would not be too concerned.
‘Given all the areas facing increases such as fuel and houses, I don’t think that it will be something that will stick out in people’s minds.’
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