PwC warns of motor rate hikes up to £1,000 after discount rate cut

Car industry

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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