Insurers pay record amount to motorists
Motor insurance pay-outs so far this year have reached a record level with over £23m being paid every day, according to figures at the ABI's Motor Conference.
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 £6.4bn to private motorists and in compensation to victims of motor crashes, equating to over £23m every day. This was up four per cent 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 £271m, 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 £3bn so far this year, have risen by five per cent 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.
Commenting on these figures in opening the conference, Huw Evans, ABI's director general, 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.'