Phil Loney, the managing director for Lloyds TSB Insurance, said: There are over one million uninsured motorists in the UK and this problem is likely to worsen should insurance be priced out of reach of certain drivers.
Aviva-owned Norwich Union recently put the price up for motor insurance by 16% on average, while at risk groups including young male drivers may see their premiums rise by as much as 40%. The insurer acknowledged that it would probably lose market share, but said that the hikes were necessary to move up to profitability.
Mr Loney said that while Lloyds expects a rise in motor insurance premiums due to the rising cost of claims, the company does not expect to see significant increases of the scale predicted by Norwich Union.
