Bodyshops look set to be busier and motorist can expect to pay higher insurance premiums as the economy continues to slowly recover. That is the message of several leading industry figures who believe that busier roads and more claims will be a result of increased economic activity.

The gradual improvement in the economy is already seeing more miles covered by drivers, while a  pick-up in car sales means an increase in the value of vehicles being driven, both of which have a big impact on claims cost.

FBD has been one of the first insurers to react. It says fuel sales are 6% up on last year and that this is a good indicator of the increased motoring activity which has resulted in a claims increase. A similar warning has been given by Aviva which believes conditions now point towards a rising number of accidents and increased claims activity. 

Conor Faughnan of the AA said that drivers could expect to see their car insurance premiums increase by about 5% this year, He commented, "It is fair to assume that economic recovery would push up the cost of insurance, because of the increased likelihood of claims. We can also see an increase in new car sales which means more expensive vehicles, and hence more expensive damage repair bills.”