PwC warns of motor rate hikes up to £1,000 after discount rate cut
Specialists note that SMEs will also be hit by increased rates.
PwC has predicted that the cost of an average comprehensive motor insurance policy will rise by up to £75 following the government's decision to reduce the discount rate from 2.5% to minus 0.75%.
The accountancy firm added that there will be higher increases for younger drivers (18-22 year olds) of potentially up to £1,000 and a rise of up to £300 for older drivers aged over 65.
The discount rate - also known as the Ogden rate - is used by courts to calculate the returns on the lowest risk
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