Large insurance company Esure have today told motorists of their intent to raise the cost of car insurance after the number of personal injury claims has risen. The price changes come as a result of an increase in both the amount and cost of insurance claims.
Suffering from a 80.7% fall in profit compared to last year, the Sheilas’ Wheels owners have had to announce the price increase coming into action for the rest of the year.
Esure has recently acquired a 50% stake of the company GoCompare. The comparison company has been enjoying profits of £13.4 million from January to June. This may have come as a result of a re-launched advertising campaign, featuring the popular opera singer ‘Gio Compario’.
Stuart Vann, CEO of Esure, told Sky news recently that “the claims environment continues to deteriorate and as a consequence we will seek to implement further rate increases in the second half of the year”.
The AA’s British Insurance Premium Index has recently reported that they cost of comprehensive has, despite many months of falling prices, increased by 5.5% in 12 months. It seems that the because of an increase of both the amount of insurance claims and also the over cost of the payouts, that prices for insurance are set to go up even further for motorists.
With drivers choosing to claim for even the smallest accidents, the overall cost for insurance companies has risen. This, with the increased pressure for car owners to seek compensation, has meant that premiums have increased.