All-Time High for Car Insurance Claim Costs
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