Egg car insurance predicts premium rises

The cost of motor insurance premiums will markedly rise in 2005, Egg has found.

A quarter of insurance brokers polled by the online bank said premiums will rise at least ten per cent in the coming year, with almost two thirds (63 per cent) saying they will increase by five per cent or more.

Fewer than one broker in ten thought insurance premiums would fall in 2005.

"The threat of rising premiums should encourage motorists to shop around for the best deal on their car insurance. It is important that motorists research what different insurers are offering in order to find the policy that provides the greatest level of cover and benefits at the very best price," said Andy Deller, director of banking and insurance at Egg