Flood claims hike premiums

It’s not only water levels that are rising as floods hit the UK. Claims for damaged vehicles are sending insurance premiums sky high, too

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Drivers claiming for flood damage to cars face rise in premiums

05th July 2007

Hundreds of motorists have been forced to make ‘no blame’ claims as storms swept across England last week. But the numbers are set to increase claims to the AA. Affected owners, who stand to lose unprotected discounts on their premium as a result of their claims, will now face price hikes at renewal, as their own insurers are forced to foot the repair or write-off bill.

What’s more, premiums rose by around six per cent overall last year. However, the Association of British Insurers says that drivers who don’t have fully comprehensive cover will be worst hit. It has stated that polices with ‘third party, fire and theft’ only aren’t protected against flood damage at all. Young motorists and those with older vehicles would have been most likely to sign up for this cheaper cover option.