Young people could be priced out of owning a car after insurers warned their annual premiums could rise by up to £1,000.
Drivers aged over 65 could also face an extra £300 charge, while the average comprehensive motor insurance policy could increase by up to £75 a year to cope with changes the Government has made to personal injury payouts.
The current Ministry of Justice and Small Claim and Whiplash consultations of late indicate motorists could save an average of £40 per year should the reforms take place.It now appears, however, that actually no saving will be passed to the consumer at all, in fact a step hike in insurance premiums by up to £1,000 in particular for the young motorist is possible.Although nothing is set in stone yet, it is clear even with the Whiplash and Small Claim reforms there may still be no genuine saving to the consumer once again raising further questions as to the need of the reforms in the first place.
