Car insurance: Floods recede, premiums rise

Thursday, 05 July 2007

A soggy June has seen floods across the country damage property, with a lot of focus on home insurance but car insurance holders will also feel their costs climb.

Floods which saw some cars submerged have forced hundreds of motorists to make 'no blame' claims on their cars.

While the insurance company will foot the bill for the repair or write off, making a claim means that motorists will face a hike when it comes to renewing their policies.

By making the claim, they will loose their unprotected discount, or no claims bonus, so when they come to buy cover for next year, they will pay the full premium.

Some car insurance holders won't even find the comfort that their motor insurance will repair or replacing their waterlogged car in their as third party, fire and theft policies do not cover flood damage.

Younger drivers, who tend to have higher premiums and therefore opt for the cheaper cover, are more likely to be affected.

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Swiftcover and are both trading names of AXA Insurance UK plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority