Govt. Mulls Motor Insurance Hike, Up to 25% Increase Possible

Imagine you have car insurance that protects others if you have an accident.

The government is thinking about making this insurance more expensive.

They're considering raising the price, called a premium, by about 18% or even up to 25% for some cars.

This is because insurance companies have been paying out a lot in claims and not making much money.

The last time they changed the price was three years ago.

This insurance is very important because it covers a big part of all the insurance sold.

Insurance companies say they need the price increase to cover the rising costs of medical care and more cars on the road.