Liverpool fire costs £20m in claims

Car insurers can expect to pay out £20m in claims following the New Year’s Eve fire at a Liverpool car park.

The fire broke out at a multi-storey car park next to the Liverpool Echo Arena. It’s estimated that about 1,400 vehicles were destroyed as a result.

According to the Association of British Insurers (ABI), insurers will pay out about £20m in claims for the vehicles, valuables that had been left in the vehicle and, in some cases, transportation costs.

Rob Cummings, head of motor and liability at the ABI, said, ‘Insurance exists for just this sort of event, and insurers were working hard over the bank holiday to get on with processing people’s claims as quickly as possible. Customers affected should be reassured that insurers are expecting to pay out around £20m to help get them back on the road.

‘The insurance industry pays out tens of millions of pounds every day, so while this is a very unusual event it is well within the bounds of what firms expect to deal with.’