All-Time High for Car Insurance Claim Costs

All-Time High for Car Insurance Claim Costs

March 17, 2018

The average cost of a motor insurance claim has risen to the highest level on record, according to the Association of British Insurers (ABI). Its latest motor insurance claim statistics for 2017 revealed that the total amount paid out on all motor claims stood at £8.1bn. While this figure remained broadly unchanged from 2016, the ABI said that the average claim, at £2,936, was the highest on record.

 

An increase in the cost of theft claims and vehicle repairs contributed to the rise.

 

On personal injury claims, the trade body said average claim costs in the last quarter of 2017 came in at £10,816. This is the highest quarterly figure since the second quarter of 2016.

However, the number of personal injury claims fell back slightly last year with a total 320,000 claims settled.

But the ABI said these claim volumes “remain significantly higher than should be expected given the continued fall in road traffic casualties”.

 

Despite the reduction in road casualties, whiplash-style claims reported to the Compensation Recovery Unit have been rising.

 

Rob Cummings, ABI’s assistant director, head of motor and liability, said: “Despite motor insurance remaining a highly competitive market, cost pressures saw the average price paid for motor insurance jump by 9% to a record high in 2017.

“Putting a lid on excessive costs, which end up being paid for by motorists, remains a priority for insurers. This makes it all the more important for the government to play its part, by pushing ahead with its reforms to personal injury compensation without further delay.”

 

Source: Your Money

Share on Facebook
Share on Twitter
Please reload

Recent Posts

September 11, 2018

Please reload

Follow Us
  • Instagram Social Icon
  • LinkedIn Social Icon
  • Twitter Social Icon
  • Facebook Social Icon

CONTACT

 IronStone Legal

303 Regent Studios,

1 Thane Villas,

London N7 7PH

 

+44 (0)207 619 3967

 

© All Rights Reserved. IronStone Legal - 2020
 

  • Instagram - White Circle
  • Twitter - White Circle
  • Facebook - White Circle

IronStone Legal is a trading name of Demirtas Finance Ltd, Registered in England and Wales number 07975646.
Authorised and regulated by the Financial Conduct Authority as a claims management company number 838139. 
Regulated by the Information Commissioners Office in Respect of the Data Protection Act 2018 number: Z3119423

*Fees may apply for cancellations outside of the 14 day cooling off period, calculated on an amount of work completed basis as stated in our TCs. No cancellation fees payable by you if you cancel within the 14 day cooling off period. We charge 35%+VAT (42% including any VAT) for mis-sold financial products and services.

± Before any deduction for 182 claims resolved 6 months prior to 14/02/2018 across multiple different services.