COMPULSORY auto insurance is expected to rise 50 per cent next year after a 20-per cent hike in 2002, tracking a recent steep increase in damage claims and the value of insured vehicles.
The increases will come as the cabinet pushes through many other rises in regulated prices for 2003, including energy, rent, water and transport. The government has also promised to increase the lower rate of VAT consumption tax.
The increases are part of tightened fiscal discipline following the victory in September elections of four centre-right parties.
