According to the Association of British Insurers (ABI), motor insurance pay-outs in the UK so far in 2018 have reached a record level with more than £23m being paid every day as per figures released on 20 November at its Motor Conference.
Image: An insurance claim form. Photo: Courtesy of everydayplus/FreeDigitalPhotos.net.
The pay-outs cover theft, own vehicle and third-party property damage, as well as personal injury compensation. Rising repair bills and theft claims are the main driving forces behind the rise.
The ABI’s latest motor claims data collected from its members highlights that, in the first nine months of the year:
Motor insurers paid out a total of £6.4 billion to private motorists and in compensation to victims of motor crashes, equating to over £23 million every day. This was up 4% on the same period last year, to the highest level since ABI started collecting the data at the start of 2013.
The cost of theft claims, at £271 million, jumped by 32% on the same period last year. The number of claims settled, at 41,000, rose by 11% on last year. The rise in part reflects the widely reported growth in keyless vehicle crime.
Repair bills, which at £3 billion so far this year, have risen by 5% on the same period last year. The average repair bill this year currently stands at £2,137. Ever more sophisticated vehicle technology, such as more sensors in bumpers and windscreens, is leading to a rise in repair costs.
ABI Director General Huw Evans said: “Motor insurers are delivering when it matters, keeping Britain’s motorists on the road when things go wrong, and compensating those who suffer injury in road crashes. Despite rising claim costs, all drivers will appreciate the fact that the average price paid for motor insurance has been falling this year.
“This in part reflects the continued competitive market, and that some insurers may be reacting to the progress of the Civil Liability Bill that is proceeding through Parliament that will bring much-needed reforms to the personal injury compensation system.”
Source: Company Press Release