Motor insurance pay-outs so far this year have reached a record level with over £23 million being paid every day, according to figures out today at the Association of British Insurer’s (ABI) 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:
- Repair bills, which at £3 billion so far this year, have risen by 5 percent 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.
- 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 percent 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 percent on the same period last year. The number of claims settled, at 41,000, rose by 11 percent on last year. The rise in part reflects the widely reported growth in keyless vehicle crime.
Commenting on these figures in opening the conference, Huw Evans, ABI’s Director General, said:
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out their website at: www.collisionweek.com.