UK insurers break motor insurance payout records

Quarterly sum the highest since trade body started gathering data in 2013

UK insurers break motor insurance payout records

Motor & Fleet

By Terry Gangcuangco

In the third quarter of 2023, insurers in the UK paid out £2.54 billion in motor insurance claims – the highest quarterly sum since the Association of British Insurers (ABI) began collecting data in 2013.

The record-breaking figure represents a 21% increase from the same period in 2022, according to the ABI. In a release, the trade body said the amount equates to £4,821 paid out every minute during Q3.

Of the £2.54 billion, £611 million went to personal injury claims; £1.6 billion, vehicle repairs; £160 million, replacement cars; and £178 million, theft. A total of 570,000 claims were settled in the quarter.

“These figures highlight how motor insurers deliver when motorists need them the most,” ABI general insurance policy director Mervyn Skeet commented. “When the worst happens, they keep the UK moving.

“Significant and sustained cost pressures faced by insurers, such as a 32% rise in repair costs over the last year, have impacted on the cost of cover. Despite this, insurers continue to do all they can to ensure competitively priced motor insurance.”

The director added: “These continue to be tough times for many families facing higher cost of living bills, and anyone concerned about being able to afford their insurance should speak to their motor insurer to see what options might be available.”

Also, it can still pay to shop around, Skeet said.

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