MOTOR insurance costs are set to rise by as much as 10 per cent over the next 12 months or even earlier for some motorists, the managing director of Eureko Ireland, Mr Adrian Hegarty, predicted yesterday.

Eureko the holding company for Friends Provident and Celtic International reported operating losses of £8 million in the general insurance business and Mr Hegarty warned that cheap motor insurance deals could not continue.

A number of Eureko's competitors, including the New Ireland group, have also recently signalled an increase in motor premiums.