ABI: Cost of motor insurance claims on the rise

0

The average cost of a motor insurance claim has risen to the highest level on record, according to the Association of British Insurers (ABI).

The total amount paid on all motor claims in 2017, at £8.1billion, remained virtually unchanged from 2016, the association found.

The average cost of a claim last year, at £2,936, was the highest on record. “Increases in the cost of theft claims and vehicle repairs contributed to this rise,” the ABI said.

The ABI used the research to renew calls for the government to pass its whiplash reforms as quickly as possible.

Rob Cummings, assistant director and head of motor and liability at the ABI, 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.”

The average personal injury claim in the final quarter of 2017, at £10,816, was the highest recorded since the second quarter of 2016, according to the ABI’s research.

The ABI did report that the number of personal injury claims in 2017 fell slightly on 2016, with 320,000 claims settled.

Share.

About Author

Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk