Admiral Predicts Car Insurance Premium Increases
Published: 10/06/08
Along with other insurers, Admiral are also of the opinion that car insurance premiums will probably rise at a rate higher than inflation.
Admiral car insurance is targeted primarily at car drivers who pay the higher premiums, having had accidents, penalty points or being young drivers. In this environment the company has already increased their figures by more than five percent this year.
Historically car insurance companies, like Admiral, have subsidised their premium costs by using some of their reserves. This has given them the opportunity to offer a highly competitive premium to attract new customers and maintain their market share. However this is not a model that can continue indefinitely, especially as some general insurance companies have also had to deal with major claims caused by this years flooding.