Insurers paying out record amount

Motor insurance pay-outs so far this year have reached a record level with over £23m being paid every day, according to figures released by the ABI.

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; the cost of theft claims, at £271m, jumped by 32% on the same period last year; and  repair bills, which at £3 billion so far this year, have risen by 5% on the same period last year.

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.’