Motorists face rise in car cover, warns Chaucer

By Daily Mail Reporter
Updated:

 

Drivers are facing a further inflation-busting rise in car insurance bills, Chaucer has warned.

Smashed Car Window

Cost spiral: Chaucer hit insurance customers with an average 35% rise last year

The insurer expects to increase its motor rates by an average of 14% this year following a series of hefty hikes last year.

In 2010 Chaucer hit ordinary customers with an average increase of 35%, with drivers on thirdparty deals paying a whopping 50% more than the year before.

Insurers have blamed soaring fraudulent claims and sharp practice by no-win-no-fee lawyers for pushing up the cost of car insurance.

Nevertheless, Chaucer saw its pre-tax profits tumble by a fifth to £22.5m last year after its Lloyds underwriting division revealed £137.7m from a series of natural disasters.

The group, which is fending off bids from a number of potential buyers including private equity baron Guy Hands, expects to lose almost £40m from last year's earthquakes in New Zealand and Chile.

Chairman Martin Gilbert said talks with bidders were on-going.

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