AA and Swinton predict motor rises by 10% to 20%

Swinton boss Patrick Smith has said motor premiums will rise by 20%, papers report. The AA says they will rise by about 10%.

Reasons include an increase in fraud and the high cost of personal injury claims.

The average premium of a driver with a full no-claims bonus could rise from £400 to £480.

Smith, chief executive of the Swinton group, is quoted as saying: "I would say that premiums are 20% lower than they should be. They are seriously adrift. Within the next 12 months there will be a significant correction."

The AA said 430,000 people claimed for whiplash injury last year. Their total compensation of £1.9bn is equivalent to about £66 for every policy.

Comprehensive premiums have more than doubled since the AA Index started in 1994.

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