News - Lloyds TSB criticises Norwich Union over huge car insurance prise rise

The revelation that the online car insurance company Norwich Union is increasing its prices has prompted disapproving comments from Lloyds TSB.

Lloyds has criticised the decision to put up the cost of motor insurance premiums, saying that it may well increase the number of people driving without car insurance because they cannot afford it.

Phil Loney, managing director of 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 the reach of certain drivers."

These comments come following the news that the usually cheap online car insurance provider will put its premiums up by an average of 26%, rising to 40% for those who are the highest risk; young, male drivers.

The move comes as a step for the motor insurance industry in which other providers are expected to follow.

Mr Loney said that Lloyds TSB, which also provides an online car insurance service, "does not expect to see significant increases of the scale predicted by Norwich Union", although there will be some rise.

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