Higher premiums for motorists could be on the way, one insurance group has warned.
According to Admiral, increases of five to six per cent have been seen in the industry, while its own premiums were three per cent higher in the first half of the year than at the same time in 2007.
The company said that the stronger pricing environment in the market is likely to result in premiums rising faster than claims for the first time in seven years.
However, the chief operating officer of the group, which owns Diamond and Elephant.co.uk, David Stevens, claimed that Admiral could withstand a recession as people are unlikely to give up their cars.
“A car for most people is a necessity, not a luxury, so demand is not going to fall off a cliff as it will in other sectors,” he remarked.
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