Here's how much motor insurers paid out in the UK in Q3

Usual suspects drove the rise in claims costs

Here's how much motor insurers paid out in the UK in Q3

Motor & Fleet

By Terry Gangcuangco

When it announced second quarter payouts by motor insurance providers, the Association of British Insurers (ABI) cited two factors driving claims costs – vehicle repairs and incidents of theft. Now, for third quarter figures, ABI said the 6% rise in the cost of personal injury claims was the main contributor to the overall increase for the period.

From the second quarter’s £2 billion worth of motor insurance claims, the amount went up to £2.1 billion in the third quarter of this year. “This is the third most expensive quarter since ABI started collecting the data at the start of 2013,” said the trade body.

Here are the cost details from ABI:
  • Personal injury claims - £835 million, up 6% on the previous quarter; average payout rose 2% to £10,120.
  • Vehicle repairs - over £1 billion, up 16% compared to the same period last year.
  • Theft claims - £71 million, up 25% from the third quarter in 2016; average of £6,582 an all-time high.
According to the ABI, the average cost of repairing policyholders’ damaged vehicles has surged by 46% to £1,944 since the second quarter of 2013. As for theft claims, the trade body noted a record total of 13,000 for the third quarter of this year.

“Increasing cost pressures continue to put the squeeze on motor insurance premiums, pushing up the average cost of cover to record levels and hitting young drivers particularly hard,” commented Rob Cummings, assistant director, head of motor and liability at ABI. “Reforms to the discount rate cannot come soon enough.

“So it is vital that the Government pushes ahead without delay on its proposals, as well as implementing changes to the rules governing payouts for less serious soft tissue injuries like whiplash.”


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