Insurance expert: Premiums may increase

Friday, March 12 2010

Consumers could see increasing insurance costs after the bad weather this winter led to a rise in claims.

This is the warning of technical services manager for the British Insurance Brokers' Association Steve Foulsham.

He gave the example of burst pipes, which many homes have been forced to claim for due to the extreme British weather.

"It wouldn't surprise me one little bit if it leads to some sort of rate hikes in the market, because of the sheer volume of claims," Mr Foulsham explained.

Motor claims also went up because of the ice and snow leading to more accidents. This means there will probably be a higher cost to insure vehicles than previously.

According to figures from the Association of British Insurers, some £395 million worth of claims were made by motorists in December 2009 and the first month of this year.

Much of this came from motorists who had slipped on icy roads and caused accidental damage to vehicles.

And £255 million was paid out to homeowners and businesses for damage to their property - a typical example of which is damage to roofs from the snow.