Direct Line's shares skyrocketed this morning as the insurer revealed it had struck a deal to sell part of its business and that hiking car insurance premiums was paying off. The insurance company said it had reached a deal with RSA insurance to sell its brokered commercial insurance for a total that could reach £550million. Car insurance premiums have been on the rise with insurers blaming increased repair costs as more expensive parts and labour inflation send repair bills spiralling. In July, Confused.com revealed that that car insurance premiums was at its highest-ever level, with the average driver now paying £776 a year. During the pandemic, fewer cars were on the road, as a result car insurance premiums fell as there were fewer crashes to pay out for.

Source: Daily Mail September 07, 2023 19:32 UTC