Admiral warns that cost of car insurance in Britain will rise further in 2010

By Jamie Dunkley Published: 12:40PM GMT 02 March 2010

Admiral Group

Henry Engelhardt, head of Admiral, pronounced the FTSE-100 word organisation had increasing engine premiums by 12pc over the last year to "compensate for claims inflation". He likely that the direction would go on this year.

The engine insurer, that additionally operates the Elephant and Confused brands, saw increase prior to taxation burst 7pc to �215.8m, with �206.9m of this entrance the UK car word business.

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Mr Engelhardt said: "Prices have been going up opposite the marketplace becasue of personal damage claims and more aged sites enlivening people to see for cheaper insurance.

"We think this direction will go on via 2010."

According to the AA British Insurance Premium Index engine word rates jumped by a jot down 7pc alone during the last entertain of 2009.

However last week, Royal Bank of Scotland Insurance pronounced posted a �170m loss during the duration opposite the Churchill, Direct Line and Green Flag brands. The organisation pronounced increase had been strike by a a reduction of go on associated and corporeal damage claims.

Malcolm Tarling, a orator for the Association of British Insurers, said: "Legal costs concerned in settling engine personal damage claims need to be reduced, as they now supplement an additional 10pc to engine premiums. These, together the costs of uninsured pushing and word fraud, go on to put an ceiling vigour on engine premiums."