You are here: Home - Insurance - News -

Car insurance claim costs at record high

0
Written by: Paloma Kubiak
09/03/2018
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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
2276283-confusedwoman
Female millennials embrace the stock market

Female millennials are becoming more active investors with trades up 15% year-on-year, according to research from The Share Centre.

Close