THE Vehicle Builders and Repairers Association has predicted a rise in motor insurance premiums of between 15 and 18% over the next 12 months, and has urged members to increase their labour rates accordingly. Major insurance companies, however, denied increases would be that high.

VBRA managing director Ron Nicholson said: 'I urge body repairers throughout the industry to avoid contractual agreements that can only provide unprofitable work. Look very closely at the small print and if in any doubt please check with the VBRA's member services department.'

Eagle Star's commercial motor manager Roger Thrift said the VBRA's predicted rise was far too high and, as far as fleets were concerned, would also depend on the claims records of individual companies. We know that during 1996 many fleet clients have had reductions and rates have been a bit depressed, but looking at 1997 I cannot see insurance rates going up by these levels. I would have said they are likely to rise by, on average, eight or nine per cent.'