Motorists to be hit by 10% insurance hike

MOTOR insurance costs are to rise by at least 10%, with companies blaming an increase in the number of uninsured drivers and fraudulent claims.

Fuel costs are also likely to increase after oil hit a year-high of $80 a barrel yesterday, on the back of growing demand for crude oil.

A survey by accountancy firm Deloitte found 85% of motor insurance companies expect to increase premiums next year. Half expect increases of between 5%-10%, while one-in-five have plans to hike premiums by more than 10%.