Broker Taylor Price Direct Choice has criticised reports that private motor insurance is set to rise by up to 25% in 2001.

Managing partner Adrian Parry said that the claim made by Datamonitor was misleading.

He said: “This prediction takes into account the whole cross-section of insurance providers – what's the point of including rates that are not competitive?

“For example, an insurance company may well increase a premium from £400 to £500, but this is irrelevant if you can get the same cover from another insurer for £350,” he said.

Parry said his brokerage had seen premiums rise by only six per cent for some quotations, well under the 25% figure reported by Datamonitor.