RBS plans motor insurance price rise

20 December 2006
The Royal Bank of Scotland (RBS) is intending to further increase the cost of its motor insurance premiums next year, according to reports.

Following a similar move by Norwich Union recently, the RBS price rises could reportedly move into double digits before the end of 2007.

The company has already been implementing premium increases this year, with hikes of five per cent coming into effect over the past three months.

Price comparison website moneysupermarket.com has commented on the news, saying that many consumers may not "cotton on" to the impact of the news as they could be oblivious to the fact that their insurer is backed by RBS.

Direct Line, Privilege, Churchill and Prudential are just some of the brands that the Royal Bank of Scotland currently owns.

"The price hikes announced so far by two of the UK's biggest insurers, RBS and Norwich Union, will impact on an estimated four out of ten motorists, and we expect other major insurers such as Royal Sun Alliance to announce premium increases in the new year," said Richard Mason, director of insurance at moneysupermarket.com.

"Motorists now have more reason than ever to shop around for the best value policy based on their unique circumstances."

Mr Mason advised motorists that, if their circumstances are unchanged, they should be able to renew their insurance policy for the same price, if not cheaper, than when it was first purchased.

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